UHS is already reneging on its promises ... Reduces its upfront payment by $5 million | Eastern North Carolina Now

    Publisher's Note: We would lie to thank the Beaufort Observer for their timely reporting and commentary of the BRHS debacle.

Sets up a reduced buyout at the end ...
Leaves some wondering what's next ...

    University Health Systems (UHS) has already reneged on its proposal to buy Beaufort Regional Health System...to the tune of reducing its offer from $30 million upfront money to $25 million. Moreover, rather than assume all liabilities, along with the assets, of the BRHS now UHS and was claimed by some (in the public hearings) UHS is not saying there is a list of liabilities that they will not assume. More specifically, if they have to pay those liabilities they will deduct it from the $10 million purchase price at the end of the lease.

    It is, of course, much more complicated than that, but that's the gest of it. Since all other competing entities have been driven away, UHS is not giving Beaufort a "take it or leave it" proposition.

    You will hear in the video below the board attorney, Joe Kahn, explain the revised Letter of Intent (LOI) UHS recently sent. The Board then went into closed session to confer with the attorney and came back out and voted without discussion on a motion that was obviously crafted behind closed doors to authority the attorney and board chair Alice Mills Sadler to negotiate further with UHS, reportedly on the issue of how to deal with the accounts receivable (what the Hospital is now owed).

    The recent audit done on the Hospital books for last year restated the value of the accounts receivable, reducing them by approximately $4 million. Click here to hear the auditor present his report to the County Commissioners.
    BRHS Commissioners to right from left: Vice Chairman Brenda Peacock, Chairman Alice Mills-Sadler. Beaufort County Commissioners form left to right: Chairman Jerry Langley, Vice Chairman Stan Deatherage.    images by Brandia Deatherage
    You will note in the presentation the auditor is asked about whether there is a conflict of interest in his leading the audit project teams for both BRHS and UHS. He, of course sees no conflict but the judgment he made in restating the value of the assets for BRHS turned out to be the apparent reason UHS revised its bid. Nonetheless, as we have previously reported, UHS will be getting in excess of $175 million worth of assets for $35 million for a business that generates $60+ million in revenue per year not including the value of the Certificate of Need which gives them a virtual monopoly on the heath care business in Beaufort County for thirty years.

    You can review the revised proposal by clicking here.

    Hospital board member and county commissioner Hood Richardson, in a brief interview after the meeting said: "I am really disappointed UHS has backed down on its revised offer which it made when we had a competitive bid process in place. Now that all competitors have been driven away, that's what happens when you don't have bidders competing for the business. But what I am even more concerned about now is how much more that UHS has promised will they not honor. That long list of liabilities does not bode well for what's coming down the road. And when they get around to deciding what they are going to do about the doctors' practices my fear is that they will renege again on the commitment I feel they originally made not to cut health care services in Beaufort County. The simple fact is there is way more value in BRHS than UHS is paying for. And we need to remember, Beaufort County will have little or no say-so in the decisions that are coming down the road."

    Here's the video of the portion of the meeting dealing with the UHS revised proposal: