Modern Healthcare - - REGIONAL NEWS - — Beth Kutscher

— Rutherford Re­gional Health Sys­tem fi­nal­ized the ma­jor terms of a takeover pro­posal that would see the 116-bed hospi­tal be­come a full mem­ber of Mis­sion Health Sys­tem, Asheville, N.C. The two sys­tems first dis­closed plans to en­ter into ne­go­ti­a­tions in Septem­ber. The newly signed mem­o­ran­dum of un­der­stand­ing al­lows Rutherford’s board of trustees to com­plete the ne­go­ti­a­tion and due dili­gence process, ac­cord­ing to a news re­lease. Rutherford’s unan­i­mous de­ci­sion to part­ner with four-hospi­tal, not-for-profit Mis­sion capped off a search ef­fort that took the bet­ter part of last year. The deal will in­ject Rutherford with new cap­i­tal, in­crease its ser­vices and help with physi­cian re­cruit­ing. It will also al­low it to draw on Mis­sion’s man­age­ment ex­per­tise and re­al­ize economies of scale, ac­cord­ing to the re­lease. The re­lease added that Rutherford, also not-for-profit, will main­tain a “strong, long-term voice in the strate­gic di­rec­tion of the health sys­tem.” The on­go­ing ne­go­ti­a­tions will ham­mer out the de­tails on the cap­i­tal re­quire­ments, long-term in­vest­ment plans and new ini­tia­tives that will be part of the deal.

Rutherford Re­gional Med­i­cal Cen­ter, above, will be­come part of Mis­sion Health Sys­tem of Asheville, N.C., in a deal worked out be­tween the two not-for-prof­its.

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