NEW HANOVER COUNTY, NC (WWAY) — A highly anticipated vote on the future of New Hanover Regional Medical Center is expected to take place Monday afternoon.
County commissioners will vote on a recommendation for a partnership of NHRMC.
Novant would buy the hospital for $2 billion up front with a total investment of nearly $5 billion over 12 years.
Last week, the hospital’s Board of Trustees approved the recommendations.
Prior to the vote, the county released a draft outline of where the proceeds will go related to NHRMC’s potential partnership.
The Board of Commissioners will discuss and vote on whether to approve the draft Letter of Intent (LOI) with Novant Health at Monday’s meeting. The county says the board is able to make modifications and recommendations at its meeting.
Here is a high-level outline of the draft use of funds:
–NHRMC Transition Stabilization Escrow: $300 million, of which $200 million would be used to bridge any gap for NHRMC employee benefits (including pensions), and $100 million would be used for wind-down costs and liability escrow,
–County Revenue Stabilization Fund: $300 million in a reserve fund for the county to use for emergency response, debt relief, and tax and fee stabilization,
–Mental and Behavioral Health Fund: $50 million to be used by the county for mental and behavioral health initiatives, and
–Community Foundation: remaining $1.25 billion invested in a non-profit community foundation that furthers the county’s strategic priorities of health and social equity, education, community development, and community safety.
Read the full draft outline here.
If the board votes to approve the Letter of Intent today, then the final agreement – which would include the outline of the use of net proceeds – would be negotiated over the next few months and shared publicly, likely in September or October.
A public hearing will be held prior to a final vote of the NHRMC Board of Trustees and Board of Commissioners.
County Manager Chris Coudriet gave the following statement:
“The county has worked with Commissioners, NHRMC leadership and Trustees to develop a framework for these funds that ensures stability for the county, the hospital’s employees, and our residents. This is a significant amount of money that must be invested wisely and strategically. As such, the letter of intent outlines that the assets must be managed in a way that is ‘sacred and protected for the community in perpetuity.’ The Board of Commissioners will discuss the draft investment allocations and the community foundation at its meeting today and, if Commissioners vote to move forward with a Letter of Intent with Novant Health, then this framework will become part of a definitive agreement that is negotiated and finalized in the coming months.”
We will have the latest tonight on WWAY.