Halifax Regional Health System Signs Definitive Agreement to Merge with Sentara Healthcare

Halifax Regional Health System (HRHS) has signed a definitive agreement to merge with Sentara Healthcare (Sentara), Virginia’s leading nonprofit healthcare system, based in Norfolk, VA. After considering a broad range of potential partners and transaction structures, HRHS chose to enter into a membership substitution transaction with Sentara, given its similar mission rooted in community-based, high-quality healthcare and interest in growing HRHS’s position in Virginia’s southern Piedmont region. The transaction is valued at over $155 million and is notable, in part, for the cash infusion that Sentara will provide HRHS at closing, scheduled for July 1, 2013. This cash infusion will further enhance HRHS’s already strong balance sheet and provide immediate liquidity for to-be-determined strategic projects in the region.

Juniper’s Role
After assessing their strategic options, the Board of Directors of HRHS engaged Juniper Advisory to design and manage a competitive transaction process. Juniper’s engagement consisted of three phases:

• Options assessment, including a review of business value and education regarding the range of ownership alternatives
• Transaction design, including identification of potential suitors, marketing strategy and implementation
• Transaction negotiation and execution

Halifax Regional Health System
HRHS is a nonprofit multidivisional healthcare organization providing a variety of services to approximately 80,000 residents of southern Virginia and northern North Carolina. HRHS includes Halifax Regional Hospital, a 192 bed regional referral center with more than 100 physicians in 28 specialty areas serving residents of all ages. In merging with Sentara, the HRHS Board seeks to strengthen HRHS’s physician and staff recruitment and retention efforts, enhance computer and technology upgrades, expand clinical services and quality improvement initiatives and enable the purchase of expensive supplies and equipment at a lower cost. HRHS chose Sentara after a rigorous 18 month-long process.

Sentara Healthcare
Sentara is a nonprofit healthcare organization operating more than 100 sites of care across Virginia and northeastern North Carolina. The system is comprised of 10 acute-care hospitals, advanced imaging centers, 10 nursing and assisted-living centers, outpatient campuses, a statewide home health and hospice agency, a 3,680-provider medical staff and three medical groups with 618 providers. Sentara is consistently ranked as one of the top Most Integrated Healthcare Systems in the nation by SDI Health and Modern Healthcare magazine. Sentara’s Heart Hospital/Sentara Norfolk General Hospital achieved a “Top 50” ranking in the annual U.S. News & World Report “America’s Best Hospitals” issue.

In the Press
Click here for more information on the transaction from The News & Advance.