U.Va. Health System to buy out Novant Health in NoVa partnership
Transaction would add 1,000 beds to the health system
The University of Virginia Health System has signed a letter of intent to buy out Novant Health U.Va. Health System, a Northern Virginia regional health system owned by the two institutions through a joint operating company that formed in 2016.
Financial terms of the proposed acquisition have not been disclosed.
Winston-Salem, North Carolina-based Novant Health currently owns 60% of the health system, while U.Va. Health has 40% ownership in the joint operating company. If the new agreement is approved, U.Va. Health would own all the facilities and assets that are currently part of the joint operating company. Facilities include Novant Health U.Va. Health System’s Culpeper, Haymarket and Prince William Medical Centers.
Becoming full owner of the Northern Virginia health system would give U.Va. more than 1,000 inpatient beds across the three hospitals.
“Our goal is to further enhance access to quality care for residents of the region and to deliver this care when and where they need it,” Dr. K. Craig Kent, U.Va.’s executive vice president for health affairs, said in a statement. “We will do this in collaboration with all of the team members at Novant Health U.Va. Health System and the region’s medical community, including both employed and independent physicians.”
The closing of the transaction is subject to regulatory approvals and due diligence reviews. The systems plan to finalize the acquisition by July 1, according to a joint statement.
“Together, Novant Health and U.Va. Health have determined that having a single owner is the best way to provide exceptional care in the communities that the system serves,” Novant Health’s President and CEO Carl S. Armato said in a statement.