Twin County Regional Healthcare Joins Duke LifePoint Healthcare
April 3, 2012
Virginia hospital’s joint venture with Duke LifePoint brings commitment of $20 million in capital improvements, will enhance healthcare provided throughout the region
Galax, Virginia – The Twin County Regional Healthcare (TCRH) Board of Directors and Duke LifePoint Healthcare today finalized their agreement to jointly own and operate TCRH and its affiliated assets. The newly formed joint venture will strengthen TCRH for the future and give the hospital the resources it needs to enhance the medical services offered in its communities.
“This is a very exciting day for our hospital and community and the beginning of a wonderful new chapter in TCRH’s 38-year legacy of caring for the Twin Counties and the surrounding region,” said TCRH President and CEO Jon D. Applebaum, MHA. “As part of Duke LifePoint, TCRH will have access to clinical, operational and financial resources that will help us not only enhance the quality care for which we are known, but allow us to invest in new technology and services to grow and better serve the healthcare needs of our communities.”
Under the terms of the final agreement, Duke LifePoint owns 80 percent of TCRH and its assets, while TCRH retains a 20 percent ownership stake. Duke LifePoint has committed to investing $20 million in capital improvements at the hospital over the next 10 years. The retained assets and proceeds from the transaction will eliminate TCRH’s debt. The remaining proceeds, approximately $10 million, will help fund the Twin County Community Foundation, which is being formed out of the Twin County Regional Healthcare Foundation, to support crucial community needs. Other terms of the agreement were not disclosed.
“Our board explored potential affiliation options for TCRH for more than a year before selecting Duke LifePoint as the ideal partner for our hospital and community,” said Doug S. Vaught, Chairman of the TCRH Board of Directors. “We are looking forward to collaborating with Duke LifePoint to expand the services TCRH offers, invest in new equipment and facility improvements, recruit needed physicians, and develop more specialized healthcare services here in the Twin Counties.”
While ownership of TCRH will be split 80/20, governance of the hospital will be equally shared between TCRH and Duke LifePoint. An eight-member board will be established with equal representation from Duke LifePoint and TCRH, which will help ensure a strong community voice in the strategic direction of the hospital.
“TCRH has been a keystone of quality healthcare in the Twin Counties area for nearly four decades,” said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. “We are proud to welcome the hospital to Duke LifePoint and excited to work together with its team to find ways to make this community healthier.”
TCRH is the third hospital to join Duke LifePoint and the first Virginia hospital in the network. Other Duke LifePoint hospitals are Maria Parham Medical Center in Henderson, North Carolina, and Person Memorial Hospital in Roxboro, North Carolina. Duke LifePoint also operates DLP Cardiac Partners, which offers hospital-based catheterization labs and mobile catheterization services in North Carolina. Additionally, Duke LifePoint has signed a memorandum of understanding to pursue the acquisition of Marquette General Hospital, Inc., in Marquette, Michigan.
“TCRH is a strong addition to Duke LifePoint as we grow our network of hospitals and health providers,” said William J. Fulkerson, Jr., MD, Executive Vice President of Duke University Health System. “Through this new joint venture, we have a great opportunity to work with TCRH to transform healthcare in this region today and into the future.”
About Twin County Regional Healthcare
Twin County Regional Hospital is the flagship of the Twin County Regional Healthcare delivery system. The hospital is located in Galax, Virginia, the center of the Twin Counties of Grayson and Carroll Counties in Southwest Virginia. Centered on the mission “to promote, preserve and restore the health of our community,” emphasizing excellent service, safety, quality and efficiency, Twin County Regional Hospital has been the anchor and the region’s leader of healthcare for 38 years. The hospital and its affiliates – including Twin County Family Care Centers (Behavioral Health; Family Practice in Galax & Hillsville; Pediatric Family Care Center; Twin County Ear, Nose & Throat; Twin County Rheumatology; Twin County Surgery and Twin County Urology) and Twin County Health Services (The Wellness Center) – continually develop and improve services as well as outreach programs in response to community need based on a foundation of teamwork, compassion and respect for all. For additional information, please visit www.tcrh.org.
About Duke LifePoint Healthcare
Duke LifePoint Healthcare, a joint venture of Duke University Health System, Inc. and LifePoint Hospitals® (NASDAQ: LPNT), was established to build a dynamic network of hospitals and healthcare providers. The joint venture, which brings together LifePoint’s experience in community-based hospital management and Duke’s world-renowned leadership in clinical service, is strengthening and improving healthcare delivery by providing community hospitals the clinical, quality and operational resources they need to grow and prosper. For additional information, visit www.dukelifepointhealthcare.com.
Martha A. Cole
Twin County Regional Healthcare