Fauquier Health, a nonprofit community hospital in Warrenton, Virginia, and LifePoint Hospitals, a for-profit hospital holding company in Brentwood, Tennessee, have announced a definitive merger agreement that will result in the creation of a $100 million charitable foundation.

Under the terms of the agreement, LifePoint would own 80 percent of the joint venture, while Fauquier Health and the Warrenton community would retain a 20 percent ownership stake. The joint venture plans to invest $52.8 million over the next ten years in capital improvements, including investments in new technology and equipment. Retained assets and proceeds from the transaction will eliminate Fauquier Health's $90 million debt, while the more than $100 million in remaining assets will be used to create a locally governed foundation to support community needs and nonprofit health initiatives, including the Fauquier Free Clinic.

First announced in March, the merger is expected to close by year's end. A public hearing will be held on the proposal, which must be reviewed and approved by the Virginia attorney general's office and other regulatory officials.

"This partnership offers our physicians, employees, patients, and community tremendous benefits," said Fauquier Health board chair Marshall Doeller. "Joining LifePoint will allow us to have the ability to enhance our services, recruit new physicians, and make investments that will help us better serve our community."