Duke LifePoint Healthcare is buying Conemaugh Health System for approximately $500 million.
Conemaugh, headquartered in Johnstown, Pennsylvania, owns hospitals, outpatient centers and physician group practices. The deal is expected to close in September.
Duke, which says it will retain the target’s employees, has committed $425 million to invest in Conemaugh's services and facilities over the next 10 years in an attempt to grow the company.
The buyer, headquartered in Brentwood, Tennessee, is a joint venture between Duke University Health System and LifePoint Hospital Inc. (Nasdaq: LPNT). The JV was created in 2011 to build a network of hospitals and health care providers.
For more on mergers of hospital systems and physician groups, see "ACA Reshuffles the Deck."