Randolph Health outlines turnaround plan

Aug. 6--RANDOLPH COUNTY -- Leaders with Randolph Health on Tuesday released an outline of a plan to preserve the county's financially struggling health system.

The health system, which has sought a merger or financial partner for the past year and a half, wants to form a financial relationship with a partner and possibly bridge the transition with money from a proposed new program to sustain rural hospitals in North Carolina.

A bill to create the program was introduced earlier this summer in the N.C. General Assembly. Senate Bill 681 is co-sponsored by Sen. Jerry Tillman, R-Randolph, who has been involved with negotiations to sustain Randolph Health.

"The new model we are working toward would ensure continued health care access in Randolph County, transitioning from the current model of care to one where population health and right-sized services and facilities provide access to high-quality, sustainable care for decades to come," said Mac Pugh, chairman of the Randolph Health board of directors.

The stakes are high, since the health system is the main medical provider in Randolph County, runs Randolph Hospital in Asheboro and, with 1,200 employees, represents the county's second-largest employer.

A previously announced merger deal between Randolph Health and Greensboro-based Cone Health didn't materialize after talks were called off last year.

Randolph Health CEO Angela Orth said the health system "is in extensive, ongoing discussions with a highly capable potential successor health system to begin a multi-year, significant financial investment in the health care future of Randolph County."

To help finalize the plan, Randolph Health and its partner would tap into bridge funds to provide financial support. One source for the funds could be the Rural Health Stabilization Program currently under consideration in the General Assembly through Senate Bill 681.

The bridge funds would help with operational costs while the successor health system develops new facilities and implements the new health care model, according to Randolph Health leaders.

The bridge funds "would be used over the course of a defined three-year period to transition health care in Randolph County from where we are today to a new, sustainable model developed and operated by the successor health system," Orth said.

Randolph Health leaders have been candid about the financial strains facing the health system, which is owned and operated independently.

"I am hopeful, and we are making progress toward this new model, but we are not yet at the finish line," Orth said. "There is much more work to be done over the coming weeks and months to succeed in making the model work, and all of us at Randolph Health remain focused on taking excellent care of patients with no interruption of care."

pjohnson@hpenews.com -- 336-888-3528 -- @HPEpaul

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