Duke LifePoint Healthcare To Buy Conemaugh Health System

(RTTNews) - Duke LifePoint Healthcare, a joint venture of Duke University Health System, Inc. and LifePoint Hospitals, Inc. (LPNT), said Thursday that it has agreed to acquire Conemaugh Health System. The financial terms of the deal exceed $500 million.

Conemaugh Health System is the largest healthcare provider in west central Pennsylvania. The company serves over a half-million patients each year through the Conemaugh Physician Group and Medical Staff, a network of hospitals, specialty clinics and patient focused programs.

Conemaugh has more than 4,500 employees and 350 physicians. The transaction is expected to be completed by the first of September.

In mid-March 2014, Conemaugh Health System said its board signed a letter of intent for the company's acquisition by Duke Life Point. At that time, the board decided that Conemaugh Health System could become stronger if it partnered with a like-minded organization in order to strengthen quality and access to health care in the West Central Pennsylvania region.

Founded in 2011, Duke LifePoint Healthcare was established with a vision to build a strong network of hospitals and health care providers. Brentwood, Tennessee-based LifePoint Hospitals is an operator of general acute care hospitals in non-urban communities in the U.S.

Under the deal, Duke LifePoint will acquire Conemaugh Health System's three hospitals, outpatient centers and Conemaugh Physician Group practices. Proceeds remaining from the transaction will be used by a locally governed charitable foundation to fund future programs to meet community needs.

Duke LifePoint said it will offer employment to all Conemaugh Health System employees and also work with Conemaugh leaders to establish a local board of trustees that will include local community members, local physicians and a representative from Duke.

Duke LifePoint has also committed to invest $425 million in Conemaugh's services and facilities over the next ten years. This includes investments within the next two years to build outpatient centers in Richland and Ebensburg, and a medical education conference center, and to enhance the system's informational technology platform.

LPNT closed Wednesday's trading at $74.82, down $0.17 or 0.23 percent on a volume of 255,926 shares.