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Raleigh General Looks Forward to New Owner

Posted on: Monday, 31 October 2005, 03:01 CST

By Amos, C Kenna

BECKLEY - The prospect of having a new owner like its current one excites the staff of Raleigh General Hospital.

Nashville, Tenn.-based Hospital Corporation of America Inc. has reached an agreement to sell five of its hospitals to Brentwood, Tenn.based LifePoint Hospitals Inc., an HCA Inc. spin-off.

"From our perspective, we think LifePoint is absolutely a great fit for Raleigh General," said Raleigh General CEO Karen Bowling.

"They have a very similar philosophy as HCA. They also have the same information technology, which is very important to health care providers," she said.

Besides Raleigh General, with its 369 beds, HCA will sell three other West Virginia hospitals to LifePoint: St. Joseph's in Parkersburg, with 321 beds; St. Francis in Charleston, with 155 beds; and Putnam General in Hurricane, with 68 beds. HCA also will sell Clinch Valley Medical Center in Richlands, Va., about 38 miles southwest of Bluefield, with its 200 beds.

The primary reason for the sale of these hospitals is based on HCA's strategy to support hospitals in more urban areas, Bowling said in March when HCA announced its intention to sell.

But before the sale is finalized, the Tennessee companies must go through the West Virginia Health Care Authority's certificate-of- need process, something that has slowed the actual sale.

"Currently, LifePoint has filed with the state to purchase the hospitals. (But) what has occurred is that there have been two requests for hearings," she said, noting the requests come from attorneys of two plaintiffs that have an interest in Putnam General.

However, she said, "They've requested a hearing on all four hospitals. Now, we're waiting to get a hearing date set."

Once the hearing dates are set, the information about the sale will be provided at the hearing, she added.

Still, none of this delay dampens her enthusiasm for the upcoming sale, however, especially LifePoint's community focus.

"Their commitment to the community has been significant in the other hospitals they've purchased. That's important to Raleigh General," Bowling said.

LifePoint has indicated they're very supportive of the communities in which they're located, she said.

"For us, that means we can continue with our strategy. We're active in the community in many charitable organizations." An example she cited is Raleigh General being the sponsor of the Leaders Club for the United Way of Southern West Virginia.

Raleigh General will be one of LifePoint's larger hospitals, Bowling said.

"We're looking for someone who is willing to invest in us and grow our services. Our goal is to lead the way in technology and in terms of the types of people we serve," she added.

The latter already involves proving a large amount of charity and uncompensated care, she said.

Copyright State Journal Corporation Sep 30, 2005

Source: State Journal, The

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