Halifax Regional Merges with Sentara Healthcare

Juniper Advisory is pleased to announce that Halifax Regional Health System (“HRHS”) has merged with Sentara Healthcare (“Sentara”), Virginia’s leading not-for-profit 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. The selection of Sentara was based upon the similarities of its mission to HRHS’s roots in community-based, high-quality healthcare, and Sentara’s interest in growing HRHS’s position in southern Virginia’s Piedmont region. The transaction is valued at over $155 million and is notable, in part, for the cash infusion that Sentara provided to HRHS at closing. This capital infusion will further enhance HRHS’s already-strong balance sheet and provide liquidity for strategic projects in the region.

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

1. Finalization of options, including a review of business value and better understanding of ownership alternatives
2. Transaction design, including identification of potential suitors, regional market dynamics, marketing strategy, and implementation
3. Transaction negotiation and execution

Halifax Regional Health System
HRHS is a not-for-profit multidivisional healthcare organization providing 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 process.

Sentara Healthcare
Sentara is a not-for-profit 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 Healthcaremagazine. 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
For additional details on this transaction, please refer to this article from The Hampton Roads Business Journal.