LifePoint Hos­pi­tals to pur­chase Rock­dale Med­i­cal Cen­ter

The Covington News - - Local news -

LifePoint Hos­pi­tals, Inc. (NAS­DAQ: LPNT) has been se­lected to pur­chase Rock­dale Med­i­cal Cen­ter. The de­ci­sion was an­nounced this evening af­ter a vote by the Board of Trustees of the Hospi­tal Au­thor­ity of Rock­dale County and RMC’s Board of Direc­tors.

“LifePoint Hos­pi­tals was founded for the sole pur­pose of de­vel­op­ing strong com­mu­ni­ty­based hos­pi­tals in non-ur­ban com­mu­ni­ties, like Cony­ers and Rock­dale County. LifePoint’s val­ues are very much aligned with our own,” said Ethel Boyle, chair of the Board of Trustees of Rock­dale Hospi­tal Au­thor­ity. “RMC is a vi­tal as­set to our com­mu­nity. We be­lieve that this part­ner­ship will en­able the hospi­tal to sur­mount the dif­fi­cul­ties all stand­alone com­mu­nity hos­pi­tals face in to­day’s chal­leng­ing health­care en­vi­ron­ment and con­tinue to pro­vide the best health­care pos­si­ble to the cit­i­zens of Rock­dale County.”

To­day’s de­ci­sion fol­lows the boards’ an­nounce­ment last month that they were en­ter­ing into exclusive ne­go­ti­a­tions with LifePoint for the sale of RMC. The non-profit com­mu­ni­ty­owned hospi­tal, which pro­vides acute care, di­ag­nos­tic, emer­gency and out­pa­tient ser­vices, be­gan looking for a po­ten­tial buyer af­ter hav­ing dif­fi­culty han­dling the debt in­curred with the re­cent ex­pan­sion of the hospi­tal. Upon pur­chase, the hospi­tal’s debt will be paid and the Rock­dale com­mu­nity will re­al­ize the ben­e­fits of new rev­enues from a tax-pay­ing or­ga­ni­za­tion.

“RMC has al­ways kept the con­tin­ued health of the Rock­dale com­mu­nity as its first pri­or­ity and has made a sig­nif­i­cant in­vest­ment in its fa­cil­i­ties and ser­vices in or­der to ad­vance the care we pro­vide,” said Richard Si­mons, chair of the Board of Direc­tors of RMC. “Now, with LifePoint’s ex­ten­sive cor­po­rate sup­port, fi­nan­cial re­sources and man­age­ment ex­per­tise, we can en­sure RMC’s en­dur­ing vi­a­bil­ity and su­pe­rior ser­vice to the com­mu­nity of Rock­dale County well into the fu­ture.”

LifePoint Hos­pi­tals is a pub­licly traded com­pany and a lead­ing provider of hospi­tal ser­vices in non-ur­ban com­mu­ni­ties. Of the com­pany’s 48 hos­pi­tals in 17 states, 44 are in com­mu­ni­ties where LifePoint Hos­pi­tals is the sole com­mu­nity hospi­tal provider.

LifePoint Hos­pi­tals has a rep­u­ta­tion for em­brac­ing the needs of its com­mu­ni­ties, sup­port­ing strong re­la­tion­ships with physi­cians, up­hold­ing com­mit­ments to in­di­gent care, and rein­vest­ing cap­i­tal to sus­tain and grow ser­vices. Since 2005, it has in­vested ap­prox­i­mately $700 mil­lion in cap­i­tal in­vest­ments in the com­mu­ni­ties it serves.

“I be­lieve that LifePoint’s com­mit­ment to de­liv­er­ing high qual­ity pa­tient care is ev­i­denced by the ex­cep­tional sup­port and en­vi­ron­ments it pro­vides for its physi­cians and em­ploy­ees,” said RMC CEO Mike Pot­ter. “This part­ner­ship will strengthen our own op­er­a­tional abil­i­ties and re­sources and en­hance the de­liv­ery of ex­cel­lent pa­tient care.”

LifePoint’s of­fer, en­tail­ing a pur­chase price of $80 mil­lion and $30 mil­lion in new cap­i­tal over the next 6 years, is con­di­tioned upon the re­view and ap­proval of the At­tor­ney Gen­eral (AG) of the State of Ge­or­gia. We ex­pect to file the AG no­tice this week.

The AG will sched­ule a pub­lic hear­ing within 60 days of fil­ing and then make a de­ci­sion within 30 days of the hear­ing. LifePoint’s of­fer is also con­tin­gent on the ex­e­cu­tion and de­liv­ery of a de­fin­i­tive as­set pur­chase agree­ment, which can only be signed af­ter the pro­posed trans­ac­tion is ap­proved by the At­tor­ney Gen­eral. We would ex­pect to close shortly af­ter AG ap­proval.

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