May 31, 2018
PATH Foundation sells stock for $47 million
File Photo/Lawrence Emerson
With Thursday’s transaction LifePoint Health owns 100 percent of Faquier Hospital and related businesses.
The Warrenton-based PATH Foundation on Thursday added $47 million to its endowment with the sale of its 20-percent stake in Fauquier Health.
Finalizing the end of the joint venture simply means the PATH Foundation has increased funds that go to our mission of strengthening the health and vitality of our community. This will be reflected in both grants offered to area nonprofits and government entities, as well as in programs initiated by the foundation.
— Christy Connolly, PATH president
With the transaction, Tennessee-based LifePoint Health owns 100 percent of Fauquier Hospital and related businesses.
The cash infusion, which includes a share of Fauquier Health earnings, increases PATH’s endowment to more than $240 million, according to Amy Petty, the foundation’s spokeswoman.
This process of redeeming the 20-percent ownership began in November.
“The leadership of the PATH Foundation reached the decision to redeem ownership in Fauquier Health thoughtfully, after much discussion throughout 2017,” foundation Chairman John McCarthy said in a press release. “The completion of this agreement will allow us to better serve our communities by focusing solely on the PATH Foundation’s work of strengthening overall health and wellness, without the complexities of 20 percent ownership of the health system.”
The joint ownership agreement entitled PATH to 20 percent of Fauquier Health’s profits, which hit a record $22.7 million in 2016, the most recent year for which results are available. But, publicly-traded LifePoint controlled the local advisory board and thus decision-making on distribution of earnings and re-investment to buy equipment or to build new structures.
“Terms for redeeming our 20 percent were established when the joint venture was created (in late 2013), helping the process to end the joint venture go smoothly,” Mr. McCarthy added. “The foundation’s board and staff look forward to the opportunities this transaction will provide.”
It will expand the foundation’s grant making capacity, according to President Christy Connolly, who noted PATH has awarded almost $11 million to nonprofits and government agencies in Fauquier, Rappahannock and northern Culpeper counties.
“Finalizing the end of the joint venture simply means the PATH Foundation has increased funds that go to our mission of strengthening the health and vitality of our community,” Ms. Connolly said. “This will be reflected in both grants offered to area nonprofits and government entities, as well as in programs initiated by the foundation.”
For example, development of community health worker programs and mental health services at the Fauquier Free Clinic will continue, she added.
The PATH Foundation focuses on access to care, childhood wellness, mental health and senior services.
LifePoint purchased 80 percent of Fauquier Health in 2013. The proceeds of that sale endowed the foundation with more than $150 million. FHI Services, a corporation of the PATH Foundation, retained 20 percent ownership until Thursday.
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Silii · June 3, 2018 at 7:40 pm
I never understood why Fauquier Health sold out to a for-profit company from Tennessee. They should have partnered with Novant, UVA, Inova - a local system. I keep hearing stories that the hospital isn't fiscally healthy. I think that's because they aren't part of one of the regional systems. Many people head to Novant, Inova, or UVA.
Jim Griffin · June 3, 2018 at 11:46 am
Yes, kudos to the PATH Foundation and the philanthropy it brings.
Let's not forget that in the wake of the hospital sale that wrote this check the new owner intends to take many times this amount -- and forever -- out of our community and back to its Tennessee HQ. (Or whichever health giant later swallows Lifepoint.)
It's a good thing we have choice. UVA-affiliate, non-profit Novant in Haymarket is closer for many, just off 66.
We traded short-term gain from selling non-profit community-based medicine for the long-term benefit to LifePoint, the hospital's new owner. Lifepoint would not, could not make the deal otherwise.
Kay G. · June 2, 2018 at 10:22 am
Every community should be so lucky as to have a PATH Foundation. Their mission of working toward improving the lives of our citizens through health and wellness -- which is the basis of so much in how we are able to move through our lives -- and their emphasis on helping those who are struggling, is such a blessing.
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