NAACP butts heads with Vidant over closing of Belhaven hospital | Eastern North Carolina Now

   Publisher's note: This well presented article from the County Compass 360 yields another facet to the Vidant Health /Pungo District Hospital saga.

    BELHAVEN     The April 1st closing date for Vidant Pungo Hospital is rapidly approaching.

    In January, the North Carolina Chapter of the NAACP filed a Title VI civil rights lawsuit against Greenville-based Vidant Health. After weeks of failed attempts to find a solution, the NAACP officials issued the following statement:
Pungo District Hospital just before the public hearing on September 24, 2013: Above.     photo by Stan Deatherage
    "The Office of Civil Rights of the U.S. Department of Health and Human Services has accepted our complaint, and has initiated its investigation. It has also brought in the U.S. Department of Justice's Community Relations Service, to see whether mediation might be useful in this dispute. The CRS has contacted us, and it will be setting up some initial discussions between the parties. We anticipate we will be meeting within the next week or so. We will have no other comments on this until after the mediation is completed."

    Last week, Rev. William Barber, president of the NAACP's state chapter, and NAACP attorneys met in closed sessions with their counterparts from Vidant. Both sides used a vague, fuzzy reference to 'conversations' in describing what most believe were hard-hitting negotiations.

    "We met today for conversation. We had a good conversation and we'll have conversations in the future," said a tight-lipped Dr. David Herman, the Chief Executive Officer of Vidant.

    "We've had some very serious, very strong conversation and hermanvery open conversation," said Rev. Dr. William Barber, NC NAACP President. "We are still quite hopeful about these conversations and where they may lead, and at this time to make our commitment to mediation, we cannot discuss those matters."

    A letter from U.S. Senator Kay Hagan (D-NC) also exerted pressure. Hagan urged Kathleen Sebelius, Secretary U.S. Department of Health and Human Services to bring all parties together "to negotiate a voluntary resolution that would preserve access to emergency health services."

    Kay Hagan letter

    Those with first hand knowledge said Wednesday that the two sides have reached an agreement, the details of which are to be released Thursday, March 27.

    Although these negotiations may have changed the status quo, here is the way things stand as of press time for The County Compass newspaper:

    Pungo will lose its status as a Critical Access Hospital if replaced by a clinic with no emergency room services. An urgent care clinic does not include intensive care nor the ability to stabilize in case of heart attack, stroke or trauma significantly compromising the victims' chances of survival.

    Pungo Hospital's service area covers eastern Beaufort County and Hyde County. In September, Belhaven residents were stunned to hear of the planned closing.

    Only two years earlier, board members of the hospital – then known as Pungo District Hospital –entered into a Confidentiality Agreement (commonly known as a 'gag order') with Greenville-based University Health Systems (subsequently re-named Vidant) to develop and negotiate sale of the hospital.

    At the end of these negotiations there were three parties involved in the acquisition of the hospital: UHS/Vidant, Pungo District Hospital Corp. and Pantego Creek, LLC The latter entity was created to protect the financial interests of its 106 members – many of whom are descendants of those who pooled resources almost 60 years ago in a successful effort to create the town's hospital.

    As part of the due diligence process, Vidant confirmed Pungo District Hospital was losing money and stated that with better management finances would improve. Vidant also became aware of the hospital's location well within a flood zone.

    Under Vidant's management the financial picture did not improve. This came as no surprise to Belhaven residents, as the Vidant employee charged with management responsibilities only visited Pungo District Hospital for half a day each week.

    With regard to Vidant's concerns about the flood zone, the entire area is in a flood zone. However, in 60 years Pungo Hospital has never flooded.

    Last year, the three entities entered into secret negotiations, resulting in an agreement to permanently close Pungo Hospital. This time the secrecy was so tight, even the Belhaven Mayor, Town Manager and the Beaufort County Commissioners were kept in the dark. There had been no open communication or discussion to explore other options, even though the closing of Pungo Hospital would have far-reaching financial effects to the County Budget and the Town of Belhaven.

    Pantego Creek, LLC's acquiescence in the deal ensured that a new Vidant clinic, proposed to replace the hospital, would not offer emergency room services needed to save a heart attack or stroke victim.

    Early on, state Sen. Bill Cook, state House Rep. Paul Tine and U.S. Congressman Walter Jones, Jr. wrote letters to Vidant Health pleading for an emergency room in Belhaven.

    Healthcare facilities are dependent upon both state and federal funds. Facilities found to be in noncompliance with state and/or federal regulations face possible loss of such funds.

    Insiders familiar with Vidant, say the medical behemoth's lack of good boardroom manners is legendary — a corporate culture characterized by refusal to compromise, failure to communicate, being disrespectful, "take it or leave it attitude", intimidation and retaliation. And, as one might expect, this type of posture does not always produce effective solutions.

    Behind the scenes, Pantego Creek, LLC followed through with its decision to go along with Vidant's plan to close the Hospital and eventually demolish the building at a projected cost of $800,000. The Hospital Campus is now the property of Pantego Creek, LLC. It remains to be seen what the future holds for this property.

    A Transfer Agreement between Vidant Health, Pungo District Hospital Corp. and Pantego Creek, LLC seen by this newspaper, and effective March 17, 2014, reveals the following:

   •  Vidant has often changed its plans for Belhaven. All along Vidant has said the new clinic would be built in 18 months. Now, more recent documents say Vidant and Pungo are to use their "best efforts to obtain a final Certificate of occupancy and commence operations no later than April 1, 2017." Three years is twice as long as 18 months.

   •  Over and over again, Vidant has tried to appease Belhaven and Hyde County residents and municipal leaders over their concerns about the operation of the Clinic. Vidant repeatedly has stated the New Facility will operate on a 24/7 basis.

   •  The Transfer Agreement paints a different story. The New Facility "will initially operate on a 24/7 schedule for at least the first 36 months." After that, operating hours may be changed as determined by Vidant – confirming Vidant's reputation as that of a moving target.

   •  And, if Vidant decides that it is not satisfied with the level of cooperation received from local governmental bodies, it may choose to construct the new facility elsewhere, if Vidant builds it at all. Instead of a New Facility located in the current environs of Belhaven, such a clinic might pop up far from the core of the Pungo District Hospital's original service area.

    Skeptical Belhaven residents say it's not hard to imagine Vidant building this new clinic as far away as Hyde County.