The organizations signed a letter of intent in November 2019 to combine. In the announcement, Floyd Health System cited increased financial pressures and competition as reasons for pursuing the combination.
As part of the deal, Atrium would invest $650 million into Floyd Health System for 11 years. The money would go toward facilities, technology and employee recruitment.
The move aims to give Floyd Health access to financial resources and help the system grow and “allow us to be more responsive to the needs of our communities,” Floyd Health President and CEO Kurt Stuenkel said when the intent to combine was announced.
If the attorney general approves the transaction, the hospital system will be named Atrium Health Floyd.
Floyd Health System comprises three acute care hospitals and a behavioral health facility.
More articles on healthcare industry transactions:
LifePoint to sell Washington hospital
New Hampshire health system sells for $30M
Tenet, Methodist Le Bonheur abandon $350M deal after FTC challenge
