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.
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