LifePoint Hospitals, Inc., a leading hospital company focused on providing quality healthcare close to home in non-urban markets, announced that the Company has agreed to purchase Sumner Regional Health Systems (SRHS), a comprehensive three-market hospital system serving 11 counties in the northern middle Tennessee region.
On April 30, 2010, SRHS filed for Chapter 11 bankruptcy protection in the Middle District of Tennessee Bankruptcy Court. The proposed transaction will take place pursuant to Section 363 of the United States Bankruptcy Code and will be governed by a court-directed bidding process, subject to applicable court approval.
SRHS is comprised of its flagship 155-bed hospital Sumner Regional Medical Center, one of the largest non-government employers in Sumner County and a provider of quality care in cancer treatment, cardiac care, same day surgery, orthopaedics, diagnostics, women’s health, home health care and rehabilitation services. Other SRHS facilities include Riverview Regional Medical Center and Riverview Medical Center – South with 88 beds serving residents of Smith and surrounding counties; and Trousdale Medical Center, a 25-bed critical access hospital in Hartsville. All of these facilities are fully accredited by The Joint Commission.
In announcing the transaction, William F. Carpenter III, LifePoint’s president and chief executive officer, said, "LifePoint is a natural partner for SRHS. We share a commitment to providing high quality health care to patients and being active members of the communities we serve. The hospitals that comprise SRHS are well-positioned in attractive markets.
Additionally, the system benefits from recent capital improvements, market share expansion opportunities, and physicians and staff who are passionately committed to their communities. With our corporate headquarters and six existing hospitals in Tennessee, we know the state very well and are excited by the prospect of serving the northern middle Tennessee region. We look forward to bringing the benefits of our scale, resources and management capabilities to SRHS and the region."
If the purchase agreement is approved, its conditions satisfied and approved by the bankruptcy court, it is expected that the transaction will be completed over the summer.
The Company also noted that it would review its previous earnings guidance issued in February 2010 if the Company is successful in acquiring SRHS in the bankruptcy proceeding.
