Fauquier Health and Tennessee-based LifePoint Hospitals have officially partnered, giving Fauquier Hospital the resources to expand and improve its services, upgrade its facilities, add new technology and develop better ways of recruiting and retaining physicians.
Fauquier Health is the parent company of Fauquier Hospital, which is located in Warrenton. According to Fauquier Health spokeswoman Robin Earl, the Fauquier Health Board of Directors and LifePoint officials recently signed a definitive agreement to form a joint venture to mutually own and operate Fauquier Health, including Fauquier Hospital and its related assets.
Earl said the agreement, which the Attorney General of Virginia must review and approve, will “provide Fauquier Health support and resources to grow and prosper into the future.”
The agreement will also grant LifePoint with 80 percent ownership and Fauquier Health with 20 percent.
Earl said the joint venture would invest $52.8 million in capital improvements over the next 10 years, including investments in new technology, equipment and other improvements.
Although Earl said hospital officials won’t release the actual transaction price, she said the “retained assets of Fauquier Health and the proceeds from the transaction would eliminate the health system’s debt, and the remaining assets, in excess of $100 million, would be used to create a locally-governed charitable foundation to support crucial community needs.”
Founded in February 1925, Fauquier Hospital is a 97-bed health care facility with about 1,100 employees and about 164 physicians. “We are very pleased to take the next step in our potential joint venture with LifePoint Hospitals,” said Marshall Doeller, chairman of the Fauquier Health Board. “This partnership offers our physicians, employees, patients and community tremendous benefits. Joining LifePoint will allow us to have the ability to enhance our services, recruit new physicians, and make investments that will help us better serve our community.”
Earl also added that Fauquier Hospital will host a public meeting regarding this matter on Sept. 16 at 7 p.m. in the Sycamore room.
LifePoint Chairman and CEO William F. Carpenter III called Fauquier Health a great organization “that plays an important role in the health and well-being of Warrenton and the surrounding region.”
“We have enjoyed learning more about Fauquier Health and working with the Fauquier board and leadership team to reach this agreement for the proposed joint venture. We are excited about the opportunities for us to work together to enhance healthcare in this region,” he said.
Fauquier Health and LifePoint will share equal control of Fauquier Health, according to the agreement.
“A board with equal representation from both entities would be established to ensure that the community has an active and ongoing voice in the strategic direction of the hospital,” Earl promised.
Rodger Baker, Fauquier Health President and CEO said “his team has been impressed by LifePoint and its ideas for the future of Fauquier Health.”
“LifePoint is known for partnering with health care providers across the nation to make their communities healthier. In partnership with LifePoint, we believe we can strengthen Fauquier Health even further, and make sure we are able to provide quality care for the future.”
Headquartered in Tennessee, LifePoint already owns five hospitals in Virginia: Clinch Valley Medical Center in Richlands, Danville Regional Medical Center in Danville, Memorial Hospital of Martinsville, Twin County Regional Healthcare in Galax (a Duke LifePoint hospital), and Wythe County Community Hospital in Wytheville. In addition to Virginia and Tennessee, LifePoint also has hospitals in Alabama, Arizona, Colorado, Florida, Georgia, Indiana, Kansas, Kentucky, Louisiana, Michigan, Mississippi, Nevada, New Mexico, North Carolina, Texas, Utah, West Virginia and Wyoming.