Novant Health Inc.'s bid to take over operations of New Hanover Regional Medical Center advanced Tuesday when that hospital's board of trustees approved recommending the offer.
The next step is the New Hanover Board of Commissioners addressing Novant's $5.3 billion offer at its July 13 meeting.
Novant is attempting to establish a third flagship in North Carolina. Novant operates Brunswick Medical Center in neighboring Bolivia, where it opened a $100 million, 78-bed community hospital in July 2011.
As part of its bid to manage or own the Wilmington hospital, Novant has agreed to form its first-ever medical education partnership with UNC Health and its medical school. UNC Health already provides educational and clinical services to the New Hanover system, which is made up of 855 licensed beds at three hospital campuses.
Last Thursday, the Novant offer was recommended to the trustees by a 21-member group made up of trustees, hospital physicians and local community advocates.
If the commissioners approve the recommendations, the advisory group said, there will be multiple other steps and considerations over the coming months, and the public will continue to be kept informed." One would involve the hospital and New Hanover County executing a letter of intent with Novant Health.
The Wilmington Star-News, quoting New Hanover chief communications officer Jessica Loeper, said it could take until September or October for a final vote.
Daily management decisions would remain based in Wilmington, according to the Novant proposal.
Novant said the New Hanover hospital would have a representative on Novants board if a joint venture is formed, or two members with a fully integrated partnership with Novant as the parent company.
The trustees passed a resolution Tuesday to place $200 million from the sale into a fund that would support hospital employees and area providers.
While we firmly believe a partnership is in the best interest of the community and the NHRMC team, we know any transition is difficult for those doing the work and continuing to provide care, Jason Thompson, the trustees' chairman, said in a statement.
We want to provide the resources to help them personally and professionally so they will stay with NHRMC and grow with the organization for many years to come.
The $200 million would come out of the estimated $1.9 billion in proceeds going to New Hanover County.
Another $300 million could go toward a New Hanover County Revenue Stabilization fund to help protect local taxpayers from unexpected expenses and downturns, Another $50 million would be placed in a mental and behavioral health fund.
The trustees endorsed establishing a $1.25 billion community foundation to provide financial support to health and social equity, local education, community development and community safety.
We see the partnership with Novant Health as the best way to meet the growing needs of the region with expanded services, more affordable care options and a culture that is similar to NHRMCs," Thompson said.
The advisory group has been in place since October and listed Atrium Health and Duke Health as finalists. Bon Secours/Mercy Health, HCA Healthcare and UNC Health also submitted proposals.
Carl Armato, Novants president and chief executive, has said Novant and the Wilmington hospital are natural partners with aligned values and not-for-profit charitable missions.
Maintaining and expanding medical education at (the hospital) will allow Novant Health to best serve the Wilmington community, while continuing to build the pipeline of physician talent for North Carolina.
The attempt to find a new management team or owner has drawn opposition from community members, and a Save Our Hospital advocacy group is pursuing internal financial options.
"Save Our Hospital Inc. is a group of concerned citizens in New Hanover County who believe county leaders have endorsed a flawed process with a pre-determined outcome to sell our community hospital to the highest bidder," said Gene Merritt, the group's president.
"If not stopped, this deal will mean higher costs with no guarantees of better access or quality of care for our community."
Recommendation and review posted by G. Smith
