Sponsored by VMG Health | info@vmghealth.com | 214.369.4888

Atrium Health bids $3.1B for North Carolina hospital

Charlotte, N.C.-based Atrium Health committed to spending $3.1 billion to enter into a long-term lease and make improvements to New Hanover Regional Medical Center in Wilmington, N.C.

Atrium Health is one of three health systems working to secure a deal to partner or own New Hanover Regional. The health system presented its proposal June 11.

During the presentation, Atrium Health proposed entering into a 40-year, long-term operating lease before becoming the owner. The system said it would pay $941.8 million, including $50 million in upfront cash to the county, lease payments and community foundation funds. It also said it would invest up to $2.17 billion for capital improvements. 

Under the deal, if selected, New Hanover Regional would maintain a local governance structure, and also have two seats on Atrium Health's board. 

The other two health systems interested in acquiring the hospital are Durham, N.C.-based Duke Health and Winston-Salem, N.C.-based Novant Health. Duke Health proposed purchasing the hospital for $1.4 billion and investing $1.9 billion in capital improvements over the next five years. Novant Health proposed spending $5 billion. 

More articles on healthcare industry transactions: 
ProMedica halts plan to sell Michigan hospital
Physicians acquire 35-hospital health system from private equity firm
CHS seeks to end Florida hospital lease

© Copyright ASC COMMUNICATIONS 2020. Interested in LINKING to or REPRINTING this content? View our policies by clicking here.


Featured Webinars

Featured Whitepapers