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ELKINS -- The process of Davis Health System joining Vandalia Health is progressing, as a Letter of Intent regarding the transaction has been received by the state Health Care Authority.
A legal notice which ran in Friday's edition of The Inter-Mountain read, in full, the following:
"The West Virginia Health Care Authority announcement that it has received a Letter of Intent from Monongalia Health System, Inc., a subsidiary of Vandalia Health, Inc., to become the sole member of Davis Health System, Inc. CON File #23-7-12737-A. The capital expenditure is $30,000,000.
"Further information regarding the Letter of Intent, including the Certificate of Need application when submitted, is on the Authority's website at www.hca.wv.gov."
The Inter-Mountain newsroom requested clarification from DHS about the legal notice -- especially the $30 million figure and also the "sole member" language.
DHS responded that the legal ad referred to part of the due diligence for the previously announced intent for Davis Health System to join Vandalia Health.
"Valuation of the target organization is a normal process with due diligence," a Friday afternoon press statement from DHS to The Inter-Mountain read.
"The capital expenditure is the value of the asset being transferred, and monies for the expense of making the transfer," the statement reads in regard to the $30 million figure.
"'Sole member' is the nomenclature used during such transactions in the nonprofit sector," the statement reads.
On May 31, officials announced that Davis Health System planned to join Vandalia Health, although the DHS brand would stay intact.
The announcement said the organizations had signed a non-binding letter of intent for DHS to join Vandalia Health. It added that the organizations plan to complete due diligence and then close the transaction after the receipt of all necessary regulatory and governance approvals. A tentative time frame for the process is four to six months, officials said.
A joint press release from the two companies on June 22 said the two had signed a management agreement and are "in the process of completing due diligence and have filed all necessary regulatory and governance applications."
DHS employs nearly 1,000 healthcare professionals, according to the system's LinkedIn page.
Mon Health System and Charleston Area Medical Center (CAMC) Health System merged in September of last year to form Vandalia Health.
Vandalia Health has more than 12,000 employees, according to its website.