LifePoint finalizes $5.6B merger with RCCH HealthCare Partners
LifePoint Health, a healthcare services company based in Tennessee, and RCCH HealthCare Partners completed their $5.6 billion merger on Nov. 16. The deal was originally announced in July.
The combined company is privately held and will operate under the LifePoint Health name. RCCH HealthCare is owned by private equity fund Apollo Global Management. LifePoint’s common stock ceased trading on NASDAQ upon completion of the transaction.
The deal was the largest healthcare transaction announced during the third quarter of 2018, according to PwC. It also underscores the continued heightened interest of private equity in the healthcare sector.
The new entity operates regional health systems, physician practices, outpatient centers and post-acute facilities in more than 85 non-urban communities across the United States, according to the announcement. LifePoint will remain in its headquarters of Brentwood, Tennessee.
The merger also brought along a wave of executive changes. William F. Carpenter III, the former chairman and CEO of LifePoint Health, and Marty Rash, formerly CEO of RCCH HealthCare, will remain as members of the board of directors.
“The healthcare delivery system in America is changing rapidly, and it is vital that we take the steps needed to ensure that high quality, compassionate care will be available to non-urban communities across the country,” Rash said in a statement. “The merger of these two companies creates an organization that is well positioned to be impactful to our patients and our communities for years to come.”
David Dill is CEO of the new LifePoint Health. He formerly served as president and COO of the healthcare services company.
Under terms of the transaction, LifePoint shareholders received $65 per share in cash for existing common stock they owned, a premium of roughly 36 percent to the company’s closing share price prior to the deal announcement.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."