Cone Health has signed a Letter of Intent to merge with Sentara Healthcare
August 17, 2020
Cone Health (“Cone”), a nonprofit, integrated health system providing care across the full spectrum of health care services to patients throughout the North Carolina triad region, has signed a Letter of Intent to merge with Norfolk, Virginia-based Sentara Healthcare (“Sentara”).
The merger will create a combined organization with a unique value-based approach that is focused on keeping people healthy and well, while providing high-quality, accessible and affordable health care in more ways and in more places. The communities served by Cone Health and Sentara do not overlap. As a result, the combined organization will ensure that consumers have more choices for health care and insurance plans. The merger will deliver health care in more ways and more places with more options to pay for it. The combined organization will be led from the Norfolk, VA Headquarters and Greensboro, NC will serve as the regional headquarters for the Cone Health division. There will be health insurance plan headquarters in both Norfolk and Greensboro.
The merger is expected to close mid-2021 and will enable the combined organization to shape the changing healthcare environment and to lead the transformation of healthcare to ensure the long-term success of each health system, and to offer the best care for patients and health plan members.
Cone is one of the largest and most comprehensive health networks in the North Carolina triad, with more than 100 locations, including five hospitals, three ambulatory care centers, three outpatient surgery centers, five urgent care centers, two retirement communities and more than 120 physician practices. Cone also has a Medicare Advantage health plan called HealthTeam Advantage which has 15,000 members.
Sentara is an integrated healthcare system offering care throughout Virginia, North Carolina and beyond, with more than 300 sites of care, including 12 hospitals, advanced imaging centers, nursing and assisted-living centers, outpatient campuses, physical therapy and rehabilitation services, home health and hospice agency, a 3,800-provider medical staff and four medical groups. Sentara also extends health insurance to 858,000 people through two health plans, Optima Health and Virginia Premier.
Cain Brothers served as financial advisor to Cone Health.