Carilion Clinic Completes Purchase of Stonewall Jackson Hospital
Carilion purchased the hospital from SJH Community Health Foundation for $10.9 million
LEXINGTON, Va. – Carilion Clinic today announced it has reached an agreement to purchase the last 20 percent share of Stonewall Jackson Hospital (SJH) from the SJH Community Health Foundation for $10.9 million, giving Carilion full ownership of the hospital. The hospital will be known as Carilion Rockbridge Community Hospital. The investment Carilion is making in the community will support the foundation’s efforts to improve community health.
“Today’s announcement marks the beginning of the next chapter in the 15-year partnership between Carilion and the SJH Community Health Foundation,” said Dr. Richard Teaff, chair of the Carilion Stonewall Jackson Hospital (CSJH) Board of Directors. “This arrangement will allow Carilion to simplify management of the hospital, and it will enable the foundation to focus significant resources on our neighbors’ health care needs.”
The SJH Community Health Foundation and Carilion Clinic have been discussing the purchase for nearly two years, taking great care to conduct necessary due diligence and valuation work.
“Carilion has been an excellent community partner since they acquired the majority share of Stonewall Jackson Hospital 15 years ago,” said Robert J. Hobbs, chair of the SJH Community Health Foundation board. “They have consistently expanded their suite of services while investing tens of millions of dollars in capital improvements. Organizations don’t make those types of investments if they are not engaged, community-minded, and in it for the long haul. We have faith, based on their history, that their level of commitment to our community will remain strong.”
With this transaction, Carilion remains a steady partner in the region’s health care, and the proceeds of the sale will allow the foundation to increase its existing community health support by hundreds of thousands of dollars annually.
A history of investment
Since acquiring 80 percent ownership of the hospital in 2005 and taking over management in 2006, Carilion has invested more than $25 million in operations, capital improvements and new clinical services. With this latest purchase, the total investment grows to more than $36 million. The Foundation has also invested in dozens of projects at the hospital.
Over the last 15 years, Carilion’s investment has led to expanded specialized services like cardiology and orthopaedics, improved imaging services like Dexascan bone density scanning and advanced mammography, and many upgrades to the facility infrastructure to improve access to care and patient safety.
The heart of a community is, in many ways, its hospital – especially in close-knit communities like Lexington, Rockbridge County and Buena Vista. We’re grateful for the community’s support these last 15 years, and we want the community to know that we support them too.
The terms of the sale ensure investments in the community’s health. The SJH Community Health Foundation plans to give the hospital $1 million to renovate the operating rooms in the near future.
“Compassionate care for our patients has been our top priority since we arrived,” said Greg Madsen, vice president and administrator of Carilion Stonewall Jackson Hospital. “We’re renewing our commitment to being here -- through purchasing the remaining share of the hospital, investing further in our employees, technology and services, and writing the next chapter in the hospital’s legacy of service to this region. And I look forward to continued work with the foundation to improve the health of our communities.”
A name reflective of the region the hospital serves
As sole owner of the hospital, Carilion will now follow the naming convention it uses for all other facilities. After necessary regulations are met, the hospital will be called Carilion Rockbridge Community Hospital to reflect the region it serves.