Carilion Completes Purchase of CSJH From SJH Community Health Foundation

We have reached an agreement to purchase the last 20% share of CSJH from the SJH Community Health Foundation for $10.9 million, giving us full ownership of the hospital. 

We do not expect any day-to-day operations to change. We’ll rename the hospital Carilion Rockbridge Community Hospital, consistent with the names of all other Carilion facilities, once we work through necessary regulations. The new name amplifies our commitment to a growing region.

“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 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, we remain 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% ownership of the hospital in 2005 and taking over management in 2006, we have invested more than $25 million in operations, capital improvements and new clinical services. With this latest purchase, our 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, our 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,” said Nancy Howell Agee, president and CEO. “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 CSJH. “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.”