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
At the Becker's 11th Annual IT + Revenue Cycle Conference: The Future of AI & Digital Health, taking place September 14–17 in Chicago, healthcare executives and digital leaders from across the country will come together to explore how AI, interoperability, cybersecurity, and revenue cycle innovation are transforming care delivery, strengthening financial performance, and driving the next era of digital health. Apply for complimentary registration now.