LifePoint Hospitals to purchase Rockdale Medical Center
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.