November 1, 2013
The Fauquier Health Board of Directors and LifePoint Hospitals® have finalized their joint venture agreement to share ownership and operation of Fauquier Health. The joint venture will bring $52.8 million in capital investments to Fauquier Health over the next 10 years and provide more than $100 million to fund a charitable foundation to support crucial community needs.
“Fauquier Health is delighted to finalize this joint venture agreement and become part of the LifePoint family,” said Marshall Doeller, chairman of the Fauquier Health Board. “As part of LifePoint, our health system will gain access to resources and support that will help us thrive in the changing healthcare environment. We look forward to working with the LifePoint team to expand our services and explore ways we can better serve our communities.”
As part of the final agreement, LifePoint will own 80 percent of the newly formed joint venture, and Fauquier Health and the Warrenton community will retain 20 percent ownership. Governance of Fauquier Health will be equally shared between Fauquier Health and LifePoint, and a board with equal representation from both entities is being established to ensure that the community has an active voice in Fauquier Health’s future.
“Fauquier Health has been a vital part of the healthcare infrastructure in Northern Virginia for more than 85 years,” said LifePoint chairman and CEO William F. Carpenter III. “We see a very bright future for Fauquier Health. We are proud to welcome the system to LifePoint and excited to work with its team to find ways that we can enhance healthcare in Warrenton and the surrounding region for generations to come.”
Over the next decade, the joint venture will make significant investments in technology, equipment and other improvements at Fauquier’s facilities. Fauquier Health’s retained assets and the proceeds from the transaction have eliminated the health system’s debt, and the remaining assets of more than $100 million are being used to create a locally governed charitable foundation to benefit the community.
“The finalization of this joint venture is an exciting milestone for our employees, physicians, volunteers, patients and community,” said Rodger Baker, Fauquier Health President and CEO. “Together with LifePoint, we have a great opportunity to make our community healthier. We can strengthen Fauquier Health for the future and make our system an even better place to work, practice and receive care. ”
Fauquier Health is LifePoint’s sixth hospital in Virginia. Its other facilities in the Commonwealth include 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.