Orth addresses hospital concerns, latest rumors

Jun. 8--Editor's note: As Randolph Health continues to search for a partner to secure its future, it has been the target of rumors in the community, particularly regarding an imminent closing. As the search continues, we continue to touch base with key players to inform the community of what's happening. Today, Randolph CEO Angie Orth and N.C. Senator Jerry Tillman address progress and latest developments.

-- -- --

ASHEBORO -- Randolph Health is said to be in stable financial condition but continues to look for a partner to protect its status as a health care provider.

On Thursday, Angie Orth, CEO of Randolph Health, responded to recent talk in the community that indicated the hospital could close its doors in a matter of weeks. Acknowledging that the institution's debt now stands at something less than $29 million, Orth said a term loan that the hospital carried matured on May 31.

"We have been able to extend the loan," she said. "That may be driving the rumors. We've continued to make regular payments since the debt originated."

In fact, Orth said, the hospital has improved its operating margin by $6.1 million during the past 12 months. That's the result of many changes, including consolidation and reduction of costs while maintaining the quality of care.

"We're trying to prevent the closing of important services," she said. "That's why a partner is necessary. We need the strength of a larger organization."

Orth insists that the large debt isn't the result of mismanagement, rather "a lot of changes at the state and national level. Randolph Health posted a loss for several years and the pace of change (in health care) has illuminated that. Rural independent communities have felt those changes more abruptly."

At the basis of the situation is unreimbursed care, she said. "The majority of people here have Medicare or Medicaid or no insurance. Medicare and Medicaid don't always cover our costs."

That population makes up 75 percent of Randolph Health's patients.

Moreover, Orth said, are headwinds in the immediate future, including managed Medicaid in North Carolina and possible expansion for the uninsured.

Much is being said now about expanding Medicaid, which is an option for the states as part of the Affordable Care Act. "If Medicaid had been expanded (early on), it would have helped but would not have been the answer (to the current situation)," Orth said.

Asked if Randolph Health has asked for financial assistance from Randolph County and the City of Asheboro, Orth said they had. Although the hospital hasn't received definitive answers yet, the administration continues to have an open dialogue with the two governments and keeps them apprised of the hospital's situation.

Administrators are also having conversations with state legislators. "They're trying to help us the best they can," Orth said. "We meet fairly regularly."

"We're having discussions with potential partners," she said. "I think at the end of the summer, we'll have an update."

Hospital continues its work

Despite the financial challenges, she said, Randolph Health has "lots of activities going on. The facilities are very well maintained. It's a safe, clean environment. We received a national award for Top 10 for safety. Randolph Health is an excellent provider of care, although our (physical) plant needs updates."

Orth credits "a very dedicated workforce and excellent clinical providers who have chosen to stay here. We're very fortunate and they deserve to be recognized and thanked. They're genuinely committed to the community."

Orth said that of the 1,150 employees at Randolph Health, more than 800 live in Randolph County. That's an economic impact based on a $55 million annual payroll.

Orth said she talks quite often with citizens and former patients and appreciates the community's genuine concerns about their local hospital. "We want them to know we're taking appropriate steps," she said. "They're not easily solvable. It requires patience to evolve the model of care here."

That model of care represents big changes from how hospitals used to operate, she said. "It starts with thinking about how patients are treated -- the right place, the right time and the right care. The evolving model is more outpatient, home care services -- a holistic approach. You look at the patient population and treat them where they are to prevent barriers that prevent them from having a high quality of life."

She said the Staywell facility off I-73/74 south of Asheboro is a good example. It's part of P.A.C.E. -- Program of All-Inclusive Care for the Elderly, which serves Medicare and Medicaid participants.

Staywell has vans to pick up the elderly from their homes and leave them at the facility for the day. There, they have activities, meals and health care providers to see to their needs. They recently took a field trip to an orchard. At the end of the day, the vans return them to their homes. It's an alternative to nursing homes and other live-in facilities.

Orth remains 'very optimistic'

Asked if she was optimistic for the future of Randolph Health, Orth said, "I'm very optimistic. What's created that optimism for me is the fact we have committed leaders, physical clinicians, a support staff and board that are committed to ensuring our community doesn't go without health care. We have the opportunity to evolve the thinking of how healthcare is delivered in rural communities."

Orth said she has seen "the most rapid pace of change the industry has experienced" since she became involved with healthcare in 1983. "It's the most challenging but exciting time in my career."

At the same time, Orth emphasized that the problems with rural hospitals are momentous. "I don't want to underplay the possibility that there could be no healthcare here," she said. "We're doing everything we can to prevent the possibility. It's a serious issue.

"If we are not able to identify a partner within a reasonable amount of time, it will require us to make choices about Randolph's future. What we're trying to prevent is closing important services, services we provide but we don't get paid enough for. That's why a partner is necessary. We need the strength of a larger organization."

Tillman 'fairly confident' help on horizon

The N.C. General Assembly is not blind to the situation of rural hospitals such as Randolph Health. Jerry Tillman, Republican state senator and majority whip from Archdale, said the legislators have been "looking at it for a while. It's mainly rural hospitals on the brink and Randolph is one of them."

He said he has been talking with the Senate leadership about the problems in healthcare and expects the topic to be broached when the Senate and House meet for budget negotiations. Tillman said there have been talks with major hospitals around the state, including UNC, Wake Forest Baptist and Cone to discuss what options there might be to help struggling hospitals.

"I'm fairly confident something might happen in a month or two with Randolph," he said, adding that nothing is definite and that certain things will need to happen. Tillman said Randolph's debt load is a hindrance to finding a partner and may require bankruptcy to unload that debt.

"It's on our radar and some movement is happening," he said. Options could include bankruptcy, a buyout or merging with one or more systems. "I'm hopeful some things will break."

Tillman credits the leadership at Randolph Health for the job they done to stabilize the hospital. "They've made a lot of steps to get in better shape," he said. "And they've done an amazing job of keeping the care up.

"It's a trying time but I'm fairly confident that good things are going to happen."

Frequently Asked Questions

Randolph Health has provided the following FAQs as a guide for answering employee, patient and community member questions regarding the status of Randolph Health.

Q: Is Randolph Health closing?

A: Randolph Health is a stable organization and continues to see patients each and every day. The hospital and outpatient clinics are open and dedicated to providing high-quality health care services to this community.

Q: Is Randolph Health being bought by another organization?

A: Randolph Health has been on a path to secure a health care partner for several years, and we continue to aggressively pursue securing the right partner to preserve local health care. Today, Randolph Health continues those discussions and is hoping to announce an update later this summer.

Q: What organizations are Randolph Health in discussions with?

A: Randolph Health continues to have discussions with health care systems in order to secure the right partner to ensure local access to health care. While those discussions are under way, we are not able to disclose which organizations we are talking with at this time.

Q: What is the status of involvement from City and County officials?

A: We are committed to keeping our elected officials, as well as the entire community, updated on the status at Randolph Health. We have routine discussions with elected officials and routinely provide written updates to our community.

Q: Has Randolph Health filed bankruptcy?

A: No, Randolph Health hasn't filed bankruptcy. On May 31st, our bank loan matured and we negotiated a loan extension and are finalizing the documents. We continue to make strong financial improvements. In the past 12 months, $6.1 million have been realized in operating margin improvements.

Q: With the financial improvements do you still need to secure a health care partner?

A: Yes. We continue to work towards month over month financial improvements and are making good progress, but in order to successfully navigate the national and state headwinds facing health care, we need to secure a partner to ensure local access to health care.

Q: Does Randolph Health have comprehensive orthopedic services?

A: Yes, Randolph Health Orthopedics & Sports Medicine provides comprehensive orthopedic services with fellowship trained physicians providing: joint replacement, sports medicine and back and neck care. Randolph Health Orthopedics & Sports Medicine provides 24-hour, seven-day-a-week Emergency Department coverage.

Q: Is Randolph Health closing nursing units?

A: Through any given year, inpatient volumes fluctuate, especially during the summer months when we tend to see a decrease in volumes. We staff based on the number of patients we have. Our goal is always for our patients to receive the highest-quality care. When patient volumes are lower, we may temporarily move patients to specific units.

Q: Is Randolph Health a high quality organization?

A: Yes. Randolph Health has received recent national recognition as a leader in patient safety.

Q: Are staff leaving Randolph Health?

A: At Randolph Health our staffing is strong. Through an aggressive recruitment program we were able to fill our nursing vacancies and our overall turnover rates are consistent with the industry standard.

___

(c)2019 The Courier-Tribune, Asheboro, N.C.

Visit The Courier-Tribune, Asheboro, N.C. at www.courier-tribune.com

Distributed by Tribune Content Agency, LLC.