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

Halifax Regional Medical Center to Merge With Novant Health

Novant Health in Winston-Salem, N.C., and Halifax Regional Medical Center in Roanoke Rapids, N.C., have agreed to a merger deal.

Financial details of the proposed transaction were not disclosed. Before Halifax Regional merges with Novant, the two organizations will enter a one-year management agreement, beginning this March. Due diligence also will occur during this period. Bob Patterson, Halifax Regional's board chairman, said he expects the deal will result in Novant investing $35 million over five years for capital projects.

The 204-bed Halifax Regional has been searching for a strategic partner since the beginning of this year. In September 2012, Fitch Ratings downgraded Halifax Regional to "BB" due to its "inconsistent operating performance" and poor payer mix. The hospital also experienced large declines in admissions, surgeries and births in 2012, and physician recruitment has also been a challenge, Fitch said.

If the deal is finalized, Halifax Regional would be Novant's 15th hospital.

More Articles on Hospital Transactions:
St. Elizabeth Healthcare, TriHealth Create Joint Venture Focused on Triple Aim
OSF HealthCare Strikes Deal to Add Rochelle Community Hospital
Pleasant Valley, Cabell Huntington Hospitals Strike Joint Management Agreement

Copyright © 2024 Becker's Healthcare. All Rights Reserved. Privacy Policy. Cookie Policy. Linking and Reprinting Policy.

 

Featured Whitepapers

Featured Webinars