With LifePoint Hospitals playing an active role in recent hospital mergers and acquisitions, the Brentwood, Tennessee organization has signed a memorandum of understanding with Fauquier Health in Warrenton, Virginia. The contract sets forth the parties' intent to form a joint venture.
Under the terms of the non-binding agreement, LifePoint would invest an undisclosed amount of money in Fauquier's business. The transaction will also result in an elimination of Fauquier's debt, and LifePoint will gain a majority ownership in Fauquier although both organizations will retain equal control of their respective organizations. The two entities will also cooperate in a number of other efforts including a campaign to recruit more physicians and the creation of a new charitable foundation.
Fauquier Health currently owns a 97-bed hospital, a 115-bed long-term care and rehabilitation facility and nine separate doctor's offices. In addition to the deal with Fauquier, LifePoint is pursuing a number of other possible acquisitions including Bell Hospital and Portage Health, both located in Michigan. Following the deal with Fauquier, LifePoint will own six hospitals in the state of Virginia.
Companies seeking to enter the mergers and acquisitions market may want to seek the help of an attorney experienced with these transactions. An experienced attorney may help provide advice and guidance on the process and necessary steps involved in mergers and acquisitions. A mergers and acquisitions lawyer may also be able to draft and negotiate contractual documents that are legally sound and mitigate necessary risks while helping businesses take an active role in the mergers and acquisitions market to stay competitive.
Source: Becker's Hospital Review, "LifePoint, Fauquier Health in Virginia to Form Joint Venture," Bob Herman, March 5, 2013