FAUQUIER HEALTH SIGNS MEMORANDUM OF UNDERSTANDING
TO FORM JOINT VENTURE WITH LIFEPOINT HOSPITALS

Potential partnership will strengthen Virginia hospital and enhance healthcare delivery
in Fauquier County and surrounding regions

 

Warrenton, Virginia (March 5, 2013) – The Fauquier Health Board of Directors today announced it has signed a memorandum of understanding (MOU) to form a joint venture with LifePoint Hospitals®, a leading hospital company focused on providing quality healthcare close to home.  The proposed partnership offers many potential benefits to Fauquier Health and the communities it serves by providing resources and support that will allow Fauquier Health to expand and enhance its services, invest in its facilities and new technology, and improve its efforts to recruit and retain needed physicians. 

 

“This proposed joint venture with LifePoint is a very exciting development for our hospital and community,” said Marshall Doeller, chairman of the Fauquier Health board.  “By partnering with LifePoint, Fauquier Health has an opportunity to maintain local ownership and an equal voice in the governance of our hospital and also gain new financial, operational and clinical resources that will help us better serve our communities and grow and prosper into the future. We are pleased that LifePoint recognizes the value of patient-centered care, and will continue to support our very special culture.”

 

The MOU is a non-binding agreement that authorizes Fauquier Health and LifePoint to move forward with the necessary steps to pursue the proposed joint venture. Following due diligence and a negotiation process, which will take place over the next few months, the parties would enter into a definitive agreement.  The agreement would then be subject to review by the Attorney General of Virginia before being finalized.    

 

Under the terms of the proposed partnership, Fauquier Health and LifePoint would share ownership and governance of the hospital, with LifePoint obtaining the majority ownership interest. Governance would be shared equally between Fauquier Health and LifePoint, preserving the community’s input into the strategic direction of the hospital and health system.

 

“LifePoint is delighted to have been chosen as a joint venture partner for Fauquier Health,” said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. “Fauquier is a great hospital with a demonstrated commitment to its patients, employees and physicians.  We look forward to exploring this potential partnership further and to examining how we can collaborate to further strengthen Fauquier Health and advance healthcare throughout  this region.”

 

The retained assets and proceeds from the transaction would eliminate Fauquier Health’s debt and allow for the development of a charitable foundation that would support crucial community health needs.  Also, the new joint venture would become a tax-paying organization, providing an important source of new tax revenue to support the local economy. 

 

“After an exhaustive search process by our board, LifePoint stood out as the ideal partner for Fauquier Health,” said Rodger Baker, Fauquier Health President and CEO. “LifePoint shares our commitment to improving the health and well-being of our community, and is dedicated to ensuring that Fauquier Health remains an excellent place to work and come for care.” 

 

LifePoint has an established presence in Virginia. The company owns five hospitals in the Commonwealth: 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.  

 

LifePoint Hospitals is a leading hospital company focused on providing quality healthcare services close to home. Through its subsidiaries, LifePoint operates 57 hospital campuses in 20 states. With a mission of “Making Communities Healthier^®,” LifePoint is the sole community hospital provider in the majority of the communities it serves. More information about the Company, which is headquartered in Brentwood, Tennessee, can be found on its website, www.LifePointHospitals.com.

 

About Fauquier Health

 

Fauquier Health is a non-profit community health system. A Planetree-designated facility, the organization is dedicated to high-quality, patient-centered care in a unique environment that considers the multiple facets of healing and respects the individuality of each and every patient. Located at 500 Hospital Drive in Warrenton, Virginia, Fauquier Health serves the residents of Fauquier and several surrounding counties. It comprises:  Fauquier Hospital, a fully accredited, 97-bed hospital; Fauquier Health Rehabilitation and Nursing Center, a 115-bed long-term care and rehabilitation facility; the Villa at Suffield Meadows, an assisted living facility; the Wound Healing Center and a medically supervised Wellness Center offering health and wellness programs. Fauquier Health also has a 50 percent ownership in the Cancer Center at Lake Manassas, a state-of-the-art radiation treatment facility. Fauquier Health also operates nine physician’s offices, including primary care and specialties. In 2011, Fauquier Health provided more than $11.2 million in community benefit support to its community. More information on Fauquier Health is available online at www.fauquierhealth.org or by calling 540-316-3588.                                            

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Dear Community Leaders,

I am delighted to share the news that the Board of Directors of Fauquier Health has signed a memorandum of understanding to form a joint venture with LifePoint Hospitals. More information about this proposed partnership is in the attached press release.

This is an exciting development for us. As a joint venture partner with LifePoint Hospitals, Fauquier Health would have access to the support and resources we need to keep our hospital strong for the future.

As you may know, hospitals across the country, including Fauquier Health, are facing fiscal pressures that are leading many to seek partnerships to help enhance their operations and provide the support and resources needed to succeed and grow in the changing healthcare landscape under healthcare reform. The Fauquier Health Board of Directors has been considering a potential partnership or affiliation since 2009.

Following an extensive search process, we found LifePoint Hospitals to be the ideal partner to allow us to continue our growth.  The company is a leading hospital provider with 57 hospitals in 20 states that specializes in providing quality healthcare close to home.

Our community will benefit in many ways from a partnership between Fauquier Health and LifePoint. Fauquier Health will have access to the support and resources we need to expand the services we provide, recruit and retain physicians, offer new opportunities for employees, invest in facility renovations and new technology, and better serve our communities. We are especially delighted with the possibility of establishing a local charitable foundation that would support crucial community health needs. The foundation would be led by a board of community representatives.

The joint venture also would become a local taxpayer, providing an important source of new tax revenue to support our local economy.

Over the next few months, we will undertake a due diligence process with LifePoint to ensure that this partnership is a good fit for Fauquier Health and our community. We will then negotiate the terms of a definitive agreement.

As the transaction progresses, representatives from LifePoint will be on site to tour the hospital, meet employees and hopefully meet many of you. We will keep you informed of opportunities to introduce yourselves and welcome LifePoint to our community.

Thank you in advance for your support as we move forward with this exciting opportunity. For more information, you can visit www.fauquierhealth.org/jointventure or call 540-316-3588 to be put in touch with the appropriate person to answer your questions.

Sincerely,

Rodger Baker
President and CEO
Fauquier Health

Fauquier Health and LifePoint Hospitals Joint Venture Key Points

·    The proposed joint venture with LifePoint Hospitals would provide Fauquier Health with financial, operational and clinical resources that will enhance the health system’s ability to offer top-quality, patient-centered care to our communities and invest in our growth.

·      As partners with LifePoint, Fauquier Health would share ownership and governance of our hospital while benefiting from the financial resources, clinical programs, purchasing power, operational resources and management expertise of one of the leading hospital companies in the healthcare industry.

·      LifePoint Hospitals was chosen as a partner for Fauquier Health because it is aligned philosophically with us on several key issues:

       A commitment to support the health and well-being of the community; 

       A dedication to quality, patient-centered care and service for our patients;

       A dedication to collaborative relationships with medical staff;

       An understanding of the importance of local involvement and governance; and

       A commitment to preserve jobs for our employees.

·    A joint venture with LifePoint will allow Fauquier Health access to the additional support and resources needed to further strengthen our hospital for the future and navigate the changing healthcare environment under healthcare reform. It will allow us to expand the services we provide, recruit and retain physicians, offer new opportunities for employees, invest in facility renovations and new technology, and better serve our communities.

·    The proposed partnership offers many benefits, not only to our hospital, but to our communities. The new joint venture would allow for the development of a charitable foundation that would support crucial health needs in our communities.

·    The new joint venture also would become a local taxpayer, providing an important source of new tax revenue to support our local economy. 

·   In the potential joint venture with LifePoint, Fauquier Health would share ownership and governance of our hospital, with LifePoint obtaining the majority ownership interest. This would give our community an equal and long-term voice in the strategic direction of Fauquier Health.

·    LifePoint has an appreciation for the patient-centered culture we have developed at Fauquier Health, and a commitment to nurturing that successful model.

·   According to the proposed agreement with LifePoint, Fauquier Health will continue accepting its current charity care policy.

·   The health system would continue to operate under the Fauquier Health name as a member of LifePoint Hospitals.

·    Fauquier Health would be the sixth hospital in Virginia in which LifePoint has an ownership stake.  LifePoint’s network of hospitals in Virginia includes: 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.  

·   Over the next few months, we will undertake a due diligence process with LifePoint to ensure that this partnership is a good fit for Fauquier Health and our community. We will then negotiate the terms of a definitive agreement. 

·    As part of this process, employees, physicians, volunteers will have the opportunity to meet representatives from LifePoint and learn about the organization and how it might work with Fauquier Health.

·    We are committed to open communication and full dialogue with employees, physicians and members of the community during all stages of this process.  We understand that you have questions, and we will do our best to answer what we can now and continue that communication in the coming weeks as we learn more. 

·    Completion of our agreement with LifePoint will require review by the Attorney General of Virginia.

·    The community will benefit in many ways from a Fauquier Health partnership with LifePoint. While LifePoint will bring expertise and capital to the equation, it will also allow a continuation of the patient-centered care that our community has come to expect.
 
·    Fauquier Health will have access to capital to invest in new technology and services to better serve the healthcare needs of our communities. 

·    LifePoint understands that the community has a vested interest in our hospital.  Because Fauquier Health will share ownership with LifePoint and governance of the hospital will be shared equally with LifePoint, we can ensure that the community will have an equal and continuing voice in the operation of the hospital. 

·    Proceeds from the transaction would be used to fund a local charitable foundation that would support crucial community health needs. This foundation would be led by a local board comprised of community representatives. 

·    The new joint venture would become a local taxpayer, providing an important source of new tax revenue to support our local economy.

·    The proceeds will also pay off Fauquier Health’s outstanding debt.

·    According to the agreement with LifePoint, FHS will be maintaining its current charity care policies.