New Hanover County to explore sale of hospital

Jul. 23--WILMINGTON -- In a move that reflects the uncertainty about the future of health care delivery and costs, New Hanover County intends to explore the idea of selling New Hanover Regional Medical Center.

A sale of the county-owned hospital, which doesn't receive any local tax dollars to operate, could net the county hundreds of millions of dollars -- money that could be reinvested in the county's schools, infrastructure or economic development projects. Earlier this year Tennessee-based HCA Healthcare, a for-profit company, completed its purchase of nonprofit, Asheville-based Mission Health, which is larger than New Hanover Regional and North Carolina's sixth-largest health system, for $1.5 billion.

But an ownership change also could fundamentally change how health care is delivered in the Wilmington area.

"New Hanover Regional Medical Center is a true asset to our region," said County Manager Chris Coudriet in a Tuesday morning release. "It has grown in scope, capabilities, quality and service and is a top employer and community partner. Our commissioners value that and recognize the importance of ensuring access to quality health care, at a lower cost, as well as health equity for every person well into the future."

The commissioners are scheduled to consider a "Resolution of Intent to Sell" at their Sept. 3 meeting. The resolution, if approved, would allow the county to seek interest from outside parties on the future of New Hanover Regional and its affiliated locations and services. Any sale or partnership deal could take more than a year.

Officials stressed that the public will have a say in the process, with a pair of public forums planned for August. A number of state agencies also would have to review and sign off on any change in the hospital's ownership structure, and it is likely the region's local legislative delegation also would weigh in.

Under the hospital's current management status, a public board of trustees appointed by the county commissioners makes policy decisions for New Hanover Regional.

But a move to privatize the hospital or enter some kind of partnership or management agreement with another entity could change or at least water down that public oversight. But officials said any agreement could include conditions that reflect public concerns.

'Uncertain future'

County and hospital officials are quick to point out that just because they are exploring the options for a sale doesn't mean one will occur.

But with so much uncertainty surrounding health care, from the possible expansion of Medicaid to spiraling drug and health insurance costs, they said it would be a disservice to the county's residents not to see what would be the right path to guarantee the long-term success of the hospital.

Among the key questions is whether a relatively small, publicly owned hospital would have the financial muscle to keep up with all of the health care changes and demands that could be coming.

"We're clinically, financially and operationally strong today, but we recognize that to prepare for an uncertain future, we need to consider new ways to support investments in the people, technology and services that can make a significant difference in the health of our community," stated John Gizdic, the medical center's president and CEO, in the release.

Booming business

Like the region as a whole, New Hanover Regional has been on a growth spurt in recent years.

When the hospital was built in 1967, about 75,000 people lived in New Hanover County. Today, the county is home to about three times that number -- with another 200,000 residents in Brunswick and Pender counties.

Annual admissions have grown 20 percent in the last decade, and in 2017 the hospital performed 30 percent more surgeries and had 56 percent more emergency department visits than it did in 2007. Over that same period, admissions jumped from 450 to 700 patients a day.

The hospital also has added more than 2,000 people in the last decade, increasing its employment to nearly 7,000 -- making it the largest employer in the county.

Besides numerous buildings and facilities around the main South 17th Street hospital campus, New Hanover Regional also has facilities and hospital-owned physician offices scattered throughout New Hanover, Brunswick and Pender counties and in Jacksonville and Whiteville.

Major locations include an emergency department in Scotts Hill and the orthopedic hospital -- formerly Cape Fear Memorial Hospital -- on Wrightsville Avenue.

New Hanover also runs, but doesn't own, Pender Memorial Hospital in Burgaw.

Contact the newsroom at 910-343-2384 or [email protected].

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