Carilion completes purchase of Stonewall Jackson Hospital for $10.9M
To be renamed Carilion Rockbridge Community Hospital
Roanoke-based Carilion Clinic announced Friday it has completed the purchase of Lexington’s Stonewall Jackson Hospital from the SJH Community Health Foundation. This was the final 20% — valued at $10.9 million — left for Carilion after its initial 2005 investment.
With the purchase comes a new name, Carilion Rockbridge Community Hospital.
The health care system originally acquired 80% ownership of the hospital 15 years ago and took over its management in 2006. Carilion has invested more than $25 million in operations, capital improvements and clinical services, which will increase to more than $36 million after buying the final 20% stake.
“Today’s announcement marks the beginning of the next chapter in the 15-year partnership between Carilion and the SJH Community Health Foundation,” Dr. Richard Teaff, chair of the hospital’s board of directors, said in a statement. “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 heart of a community is, in many ways, its hospital — especially in close-knit communities like Lexington, Rockbridge County and Buena Vista,” Carilion President and CEO Nancy Howell Agee said in a statement. “We’re grateful for the community’s support these last 15 years, and we want the community to know that we support them too.”
When asked whether the name change was influenced by a recent influx of renaming of buildings named after Confederate officers and removal of monuments, Carilion spokesperson Christopher “Chris” R. Turnbull said it was coincidental.
“Regardless of the societal debate going on right now, we would have been announcing this investment in the community and an updated name,” Turnbull said. “This is the culmination of a two-year process between Carilion and the SJH Community Health Foundation. We’re making this change now because we own 100% of the hospital, and with that, it should align with the naming convention we use for all other Carilion facilities, emphasizing the region the facility serves.
“This process involved significant due diligence and a valuation exercise — just like any other business transaction would. And it has resulted in a significant investment in the health of this community.”
The SJH Community Health Foundation also plans to donate $1 million to renovate operating rooms at the hospital.
“Compassionate care for our patients has been our top priority since we arrived,” Greg Madsen, the hospital’s vice president and administrator, said in a statement. “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.”