Atrium Health submits new purchase option for NHRMC

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NHRMC

CHARLOTTE, NC (WWAY) — Atrium Health has announced it has submitted a new $2 billion purchase option for New Hanover Regional Medical Center on Wednesday. This new offer is the second option to the original 40-year lease offer that Atrium Health originally submitted.

“Atrium Health has provided the Partnership Advisory Group and the County Commission with an alternative purchase option alongside of our long-term lease proposal so they can choose which is the best fit for the community and their vision for it,” said Eugene A. Woods, president and CEO of Atrium Health. “We listened to the community’s concerns about selling the hospital and structured our original offer with that in mind. As the process has unfolded and with other offers to purchase the hospital outright being seriously considered, we are submitting an additional option to remove any doubt about Atrium Health’s true desire to be New Hanover’s permanent partner.”

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Atrium says the new purchase offer allows the County to retain NHRMC’s net surplus cash and investments, making the value of the upfront consideration of the transaction $2 billion. In addition, Atrium Health is committing to a minimum of $1.11 billion in capital improvements over the next 15 years.

Terms of the alternative proposal option submitted by Atrium Health are
outlined below. Through the new purchase offer option in excess of $2 billion, Atrium Health says they will:

• Pay $200 million in upfront cash to the County at closing, plus transfer NHRMC’s current net surplus cash to New Hanover County, which has been estimated by NHRMC to be $460 million.
• Pay over $950 million, in equal annual installments, to New Hanover County for 15 years, ensuring a stable stream of revenue for the County.
• Acquire NHRMC and all existing physical assets.
• Make a $250 million donation to a foundation restricted for the purposes of eradicating disparities of care, dramatically improving behavioral health and eliminating opioid addiction within the next decade.
• Construct a $120 million state-of-the-art behavioral health and addiction treatment facility, to begin Day One.

To confirm local control, Atrium Health says their offer will ensure:

• Local decision making is maintained, with a two-thirds majority of the board of directors being residents of New Hanover County or the surrounding communities. The initial board will be nominated jointly by New Hanover County and Atrium Health.
• Two NHRMC directors will be nominated to serve on Atrium Health’s governing board of commissioners, providing New Hanover a voice in the greater Atrium Health enterprise.

“We believe New Hanover County is at a pivotal moment in the history of its region, and we want to make a real, lasting difference in the health of the community,” said Woods. “We want to ensure that our financial investments in New Hanover will be dedicated to health care, for everyone – including the most vulnerable, and will be available over time to grow and bear fruit.”

For more on Atrium’s previous proposal, click here.