Nason Hospital and LifePoint Hospitals Finalize Acquisition

ROARING SPRING, Pa.--(BUSINESS WIRE)--

LifePoint Hospitals® LPNT, a leading hospital company focused on providing quality healthcare services close to home, and the Nason Hospital Board of Directors today announced that the acquisition of Nason Hospital by LifePoint has been completed. As part of the acquisition, Nason Hospital has become part of Johnstown-based Conemaugh Health System. Together with LifePoint and Conemaugh, Nason will enhance and expand the services it provides and work to improve healthcare throughout its region.

“This is an exciting day for Nason Hospital, our employees, physicians and patients,” said D. Stephen Martz, chairman of the Nason Hospital Board of Directors. “As part of LifePoint and Conemaugh Health System, we will be able to strengthen our hospital for the future, keep vital medical services in our communities and preserve jobs. We also will have wonderful new opportunities to advance healthcare throughout west central Pennsylvania, improving the health and wellbeing of people in each of the communities we serve.”

Under the terms of the acquisition, LifePoint will invest $8.5 million in capital improvements at Nason over the next 10 years. This will include investments in physician recruitment, technology upgrades, new equipment and renovations. The proceeds from the acquisition will be used to retire the hospital's financial obligations, and approximately $3 million will fund the hospital's charitable foundation. In addition, as part of LifePoint, Nason will become a local taxpayer, which will provide a new source of revenue to support its local community.

“We are honored to welcome Nason Hospital to the LifePoint system,” said LifePoint Chairman and Chief Executive Officer William F. Carpenter III. “Nason has served its communities for more than a century, delivering high quality care to people throughout Blair, Bedford and Huntingdon counties. Its medical staff and employees are dedicated to their patients, and we are delighted to join them in the effort to make their communities healthier.”

As part of Conemaugh Health System, which has three other hospitals, many outpatient centers and more than 40 Conemaugh Physician Group practices in five counties throughout west central Pennsylvania, Nason Hospital will be able to seamlessly expand the depth of care it provides. By joining this growing regional health system, its providers will be able to collaborate with an extensive network of local and regional medical experts and specialists across the region.

“We are thrilled to have Nason join Conemaugh Health System,” said Scott A. Becker, chief executive officer of Conemaugh Health System. “Nason Hospital's medical staff and employees are critical contributors to their communities. Together, we have great opportunities to transform how healthcare is delivered in this region and strengthen the network of medical services provided here for generations to come.”

With the finalization of the acquisition, healthcare veteran Richard Grogan will join Nason Hospital as interim CEO, replacing Askey, whose retirement is effective April 1. Askey will remain on staff at the hospital for the next 60 days to assist with the transition. Grogan will serve as interim CEO while a national search process to identify a new hospital leader is completed.

Grogan is a seasoned healthcare executive. Most recently, he served as Interim CEO for LifePoint hospitals in Tennessee and North Carolina. Over the last decade, he served as CEO for four hospitals in Texas, New Mexico, Pennsylvania, and New Jersey. During his more than 30-year healthcare career, his experience has included both clinical and non-clinical administrative roles.

“Ray Askey has done an excellent job of leading Nason Hospital throughout the acquisition process, and we wish him the very best in his retirement,” Becker said. “We are confident that Richard can successfully lead the transition for Nason Hospital as it becomes part of LifePoint's and Conemaugh Health System's network of hospitals. He is an experienced hospital executive who will be a great addition to the Nason team until a permanent CEO is named.”

The acquisition of Nason Hospital by LifePoint was subject to regulatory reviews by the Attorney General of Pennsylvania and the Blair County Orphans' Court.

About Nason Hospital

A part of the Roaring Spring community for more than a century, Nason Hospital is committed to promoting the health and well-being of communities in the Blair, Bedford and Huntingdon counties area of central Pennsylvania by delivering safe, high quality and compassionate care to every patient. Visit www.nasonhospital.com for more information.

About LifePoint Hospitals

LifePoint Hospitals^® is a leading hospital company focused on providing quality healthcare services close to home. Through its subsidiaries, LifePoint operates more than 60 hospital campuses in 21 states. With a mission of “Making Communities Healthier^®,” LifePoint is the sole community hospital provider in the majority of the communities it serves. More information about the Company, which is headquartered in Brentwood, Tennessee, can be found on its website, www.LifePointHospitals.com. All references to “LifePoint,” “LifePoint Hospitals” or the “Company” used in this release refer to LifePoint Hospitals, Inc. or its affiliates.

About Conemaugh Health System

Conemaugh Health System, a Duke LifePoint Healthcare health system, is the largest healthcare provider in west central Pennsylvania, serving over a half-million patients each year through the Conemaugh Physician Group and Medical Staff, a network of hospitals, specialty clinics and patient focused programs. Conemaugh's 4,500+ employees and 350+ physicians are committed to excellence and repeatedly earn state and national recognition for exceptional clinical outcomes. Conemaugh Memorial Medical Center, the system's flagship hospital, provides sophisticated technology, the highest levels of trauma and neonatal intensive care and a committed history of training tomorrow's physician, nurses and allied health providers. For more information on Conemaugh, visit us at www.conemaugh.org.