LifePoint Health, RCCH HealthCare Partners merger finalized

LifePoint Health and RCCH HealthCare Partners finalized their merger late last week.  LifePoint's common stock is no longer trading on NASDAQ and will be delisted.

LifePoint shareholders will receive $65 per share in cash for each share of LifePoint's common stock they owned, which equals a premium of roughly 36 percent to LifePoint's closing share price on July 20, which was the last trading day prior to the announcement of the merger.

WHY IT MATTERS

The combined, privately-held company will operate under the LifePoint Health name and includes a footprint of regional health systems, physician practices, outpatient centers, and post-acute facilities in more than 85 non-urban communities that span coast-to-coast.

THE HISTORY

In late October, LifePoint Health stockholders approved the proposed merger with Tennessee-based RCCH HealthCare Partners, which is owned by Apollo Global Management. At the same time, a significant majority of LifePoint stockholders gave a decisive thumbs down to a "golden parachute" package that would have compensated LifePoint's top four executives to the tune of $120 million total.

LifePoint's Chairman and CEO Bill Carpenter III would have received $69.7 million, President and COO David Dill more than $25.3 million, Executive Vice President and CFO Michael Coggin $13.4 million and Executive Vice President and Chief Administrative Officer John Bumpus would have received $11.5 million, according to a filing with the Securities and Exchange Commission.

The vote on the parachute package was advisory and nonbinding provided the merger is finalized.

"The compensation that is payable pursuant to LifePoint's existing compensation plans and programs, as contemplated by the merger agreement, will be paid in accordance with its terms, as described in the proxy statement that was filed in September," said a LifePoint Health spokesperson at the time.

ON THE RECORD

"Today marks a historic moment for LifePoint Health and RCCH HealthCare Partners. We are officially one organization dedicated to providing high quality, community-based healthcare, and I am energized by the opportunities we have ahead of us to serve non-urban communities across the country," said David Dill, whose appointment as chief executive officer (CEO) of LifePoint became effective upon completion of the transaction. "Our collective teams–now united as the LifePoint Health team – share a dedication to delivering compassionate, quality care, and have a deep bench of expertise in helping healthcare providers in non-urban areas succeed. Together, we have the size, experience, resources and drive to be even greater leaders in transforming community-based healthcare for the future."

WHAT ELSE YOU NEED TO KNOW

LifePoint's headquarters will stay in Brentwood, Tennessee and its new executive team will include: David Dill as CEO; John Bumpus as executive vice president, Administration; Michael Coggin as executive vice president and CFO; Victor Giovanetti as executive vice president of Hospital Operations; Rob Jay as executive vice president of Integrated Operations; and Jennifer Peters as Executive Vice President and General Counsel.

It was unclear at the time this article was published as to whether the parachute payout would go through. A request for comment had not been returned.

Twitter: @BethJSanborn
Email the writer: beth.sanborn@himssmedia.com