One of Richmond’s biggest hospital chains has officially staked a claim on the Northern Neck.
Bon Secours Virginia Health System has completed its acquisition of Rappahannock General Hospital in Kilmarnock, about 70 miles east of Richmond. The deal closed Dec. 31 and has been in the works for about a year.
With the acquisition, 450 workers at the Kilmarnock-based facility have been pulled under Bon Secours’ wing and will remain with the hospital. Bon Secours is taking on Rappahannock’s 100,680-square-foot hospital facility, its Chesapeake Medical Group, which includes five family practice offices, and the Rappahannock General Hospital Foundation.
Exact terms of the deal were not disclosed. Bon Secours spokesperson Charlotte Perkins said the health system will absorb debts owed by Rappahannock, which accrued as the previously independent hospital struggled to maintain its finances.
Perkins declined to say exactly how much those debts amount to.
“Rappahannock General Hospital is one of the community hospitals that’s been dramatically impacted by new regulations and reimbursements,” Perkins said.
Recognizing Rappahannock’s financial instability, Bon Secours stepped in two years ago to develop an affiliation with the hospital to provide otherwise unavailable services.
“It just came to the point that, if we didn’t step in, we felt that they wouldn’t be viable and sustainable in the community,” Perkins said. “We knew there was need in the community. That’s why we decided that it was important that we step in and help save the hospital system.”
According to its 2013 Community Needs Assessment report, Rappahannock General serves a population of around 35,000. It is licensed for 76 beds.
Perkins could not say how much additional revenue may come from the acquisition for Bon Secours, especially since even patients closest to Rappahannock may choose another Bon Secours hospital for treatment.
“Our goal is to truly try to provide care in the community, to bring them to one of our facilities if they need specialized care, but when they need home care, they’ll be able to go back to their own community,” she said.
Bon Secours’ Memorial Regional Medical Center in Mechanicsville is the closest to Rappahannock General Hospital at almost 90 minutes away.
Rappahannock General Hospital CEO James Holmes will now report to Memorial Regional CEO Michael Robinson.
Perkins said Bon Secours will step in and evaluate what needs Rappahannock currently has before deciding on making changes or expansions. Many needs have already been met at the community hospital due to its earlier affiliation with Bon Secours, and those programs will continue.
The health system’s acquisition of Rappahannock General is its eighth Virginia hospital. It has four hospitals in the Richmond market, and it’s the fourth-largest health care system in the state.