Danville hospital sale raises hope for community

by Heather Hayes
for Virginia Business
July 2005

The $210 million purchase of the Danville Regional Medical Center by LifePoint Hospitals Inc. in May promises to be a boon to the community.
After debts are paid, the remaining $200 million will be used to create a foundation benefiting health, education and welfare organizations and projects. “It will be a positive situation for us,” says City Manager Jerry Gwaltney, noting that Danville will also benefit from taxes from the privately owned hospital.

Danville has struggled in recent years with job losses and plant closings because of the decline of the textile and tobacco industries. “We think this will actually strengthen the hospital and make the area that much more attractive to potential employers,” Gwaltney says.

Rural hospitals are increasingly at risk, says Dr. B.R. Ashby, the hospital’s CEO and board chairman. At least three Virginia hospitals have declared bankruptcy in recent years, and four others have been sold.
Although the Danville hospital was not in financial danger, Ashby says, it did not have the money needed to upgrade its facilities and technology over time.