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UNC Health Care Adds Johnston Health

Chapel Hill, N.C.-based UNC Health Care and Johnston Health in Smithfield, N.C., have signed a definitive joint venture deal.

Effective immediately, Johnston Health, formerly a public health system, is now an affiliate of UNC Health Care. According to terms of the deal, UNC Health Care will dole out $57.6 million in exchange for partial ownership of the new entity, Johnston Health Services Corp. The exact stake of UNC Health Care's ownership was not disclosed.

The funds will be used to expand Johnston Medical Center in Clayton, N.C. A new three-story addition will convert the outpatient center into a full-service, 50-bed hospital, which will open in January 2015, according to a news release.

In addition to capital expenditures, UNC Healthcare and Johnston Health will collaborate on service lines, including cardiovascular, oncology, obstetrics, pediatrics, orthopedics and rehabilitation.

Under the joint venture, Johnston Health's board will be comprised of 17 members, including 11 current commissioners and six executives and physicians within UNC Health Care.

The two systems entered into exclusive partnership talks last April.

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