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Lenoir Memorial Hospital: Merger or Buy-out?

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Three hospital groups submit proposals in an effort to partner with or acquire Lenoir Memorial Hospital. Three hospital groups submit proposals in an effort to partner with or acquire Lenoir Memorial Hospital.
Three hospital groups submit proposals in an effort to partner with or acquire Lenoir Memorial Hospital. Three hospital groups submit proposals in an effort to partner with or acquire Lenoir Memorial Hospital.
KINSTON, N.C. - Three hospital groups submit proposals in an effort to partner with or acquire Lenoir Memorial Hospital.

Vidant Health, Duke Lifepoint and Novant Health all have plans of their own.

Vidant, which has 9 hospitals in the east offers 2 proposed models, a joint venture or a buyout. Each promise more than $60 million in capital improvement over the next 10 years.

A re-organization last year at Lenoir Memorial eliminated 85 jobs.

"There’s optimism on the board's part that one of the proposals will work out to be what's best for the hospital.” Spokeswoman Barbara LaRoque said. “We are still early in the process and there will be much more to learn from each organization before a selection is made."

Gary Black, Lenoir Memorial’s CEO will hold a public hearing June 24th to answer questions about the proposals. It starts at 10 a.m. at the Kinston Public Library.

Duke Lifepoint Plan
-full acquisition or joint venture
-maintain a local Board of Trustees (committee members, physicians, LMH CEO and representatives from Duke)
-hire all employees w/ standard employee screenings
- hospitals in Henderson, Roxboro, Wilson and Rutherfordton

Novant Health Plan
-management agreement
-charge a fee for the management
-hospital keeps leadership

Vidant Health Plan

-Joint Venture Model: Vidant pays $20 million for 80%, Lenoir Memorial keeps 20% (PPE, 20% of investments, retains $ to fund future capital needs, LMH pays off debt of $24.2 million) Venture commits to $60 million in capital improvements in first 10 years.

-Member Substitute Model: $25 million + $60 million in capital improvements. Vidant takes full financial responsibility of the hospital. LMH pays off county debt of $5.5 million.
-new 7 member board and local directors council with 11 members.
-similar to Vidant Duplin deal. (Existing hospital corporation retained and runs hospital, but under Vidant control.)

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