LRGHealthcare filed for Chapter 11 bankruptcy protection in October 2020. The bankruptcy was necessary to relieve the health system’s debt load of more than $100 million, LRGHealthcare’s CEO Kevin Donovan said. He added that filing for bankruptcy was necessary after it became clear its debt would be an impediment to any deal.
Concord Hospital had made a $30 million bid to purchase LRGHealthcare’s assets out of bankruptcy in December 2020. LRGHealthcare’s assets include Lakes Region General Hospital in Laconia, Franklin (N.H) Regional Hospital and a network of ambulatory care networks.
The consent of the attorney general’s office included some requirements for the deal to move forward, including protections against anticompetitive practices, unfair price hikes and disruptions to clinician referral patterns or contracts.
The deal is expected to save the two hospitals as Kevin Donovan, the CEO of LRGHealthcare, warned in February that the facilities could close within two months if the deal fell through.
More articles on healthcare industry transactions:
Ohio health system joins University Hospitals
MidMichigan Health eyes acquisition of 49-bed hospital
LifePoint, Prisma call off 3-hospital deal
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.