
WILMINGTON — Although details are still scarce, six proposals for potential new ownership or partnerships for the New Hanover Regional Medical Center have been received. Next, the Partnership Advisory Group (PAG) guiding the exploration process will review them, ask clarifying questions, and then finalized proposals will be made public.
While the upcoming PAG meeting has been canceled, the sale or partnership exploration process doesn’t appear to be slowing down; according to the county, members will be reviewing the proposals individually.
As of the Monday 5 p.m. deadline, six proposals were received, including one for-profit company — HCA Healthcare — and five non-profit (including academic) organizations, Bon Secours Mercy Health, Duke Health, Novant Health, UNC Health Care, and Atrium Health (a company with whom NHRMC already has an extensive relationship, including management of its physician group). The PAG initially considered 29 healthcare systems, including 16 that expressed interest and 13 that the PAG contacted; none in the latter group submitted a proposal.
County and NHRMC officials have not released the proposals, or any details on whether they are for ownership of the hospital, new partnerships, or some other arrangement. According to both New Hanover County and NHRMC, the PAG will “review them and ask clarifying questions.” Finalized proposals will be posted online.
Transparency vs. legal protection
Early in the process, County Manager Chris Coudriet told the press that he expected proposals would be written in a way that would not require redactions. In January, PAG Co-Chair Spence Broadhurst said “every word” of the proposals would be made public. Broadhurst said the PAG would not redact any information and that if companies offering proposals wanted information shielded from the public they would have to make a sound legal argument.
According to an announcement from the county and NHRMC on Monday evening, “Once the proposals are finalized, they will be posted to NHRMCfuture.org for public review. Information that meets legal requirements for protection will not be visible, but the public will have access to hundreds of pages of proposal responses.”
The PAG will also spend some time in closed session. According to the county, “the meeting will require time in closed session to allow Advisory Group members to discuss strategic information protected by state statute.”
At the March 5 PAG meeting, various rationales for closed sessions were discussed.
According to Broadhurst, “While our goal is to do as much of the evaluation and discussion of the proposals in open session as possible, there will be times when we need to discuss competitive healthcare information. We’ll have to go into closed session for those discussions.”
PAG member Brian Eckel also noted that the ability to ‘speak freely’ about proposal evaluations without public playing their hand was important.
“Once you’ve said you love a proposal, you have lost your ability to negotiate a good deal,” Eckel said.
Next steps, Covid-19 concerns
According to the county, PAG co-chairs Broadhurst and Barb Biehner have decided to cancel the upcoming March 19 meeting. The county did not say this was being done to address Covid-19 concerns, but to “give Advisory Group members time for individual review of proposals prior to a group discussion.”
Both the county and NHRMC did acknowledge concerns in general, “NHRMC and New Hanover County leaders are carefully watching developments and adjusting plans in response to COVID-19. The situation is evolving daily, and the health and safety of our community is our top concern.”
As of Monday, President Donald Trump and federal officials have begun encouraging limiting public gatherings to 10 or less, including in private spaces and residences. Since the PAG has 21 members, there are obviously concerns both for members and the public. Like many other local governments, the PAG is working on ways to allow virtual attendance. According to local officials, updates on these efforts will be posted on the nhrmcfuture.org website.
According to the county, “Partnership Advisory Group members encourage area residents to use an email established at the start of the process to provide ongoing opportunities for comments. That address is PAGComments@nhcgov.com.”
Information on past meetings, including presentations, documents, minutes, and streamable meeting audio can be found here. Future meeting locations, times, and dates can be found here.
Send comments and tips to Benjamin Schachtman at ben@localvoicemedia.com, @pcdben on Twitter, and (910) 538-2001