NC NAACP/Belhaven File Federal Complaints Against Vidant Health | Eastern North Carolina Now

    On Saturday (April 30, 2016) the NAACP/Belhaven's Press Conference was a "Come to Jesus" moment for the "Save Our Hospital" movement. It's been 2 years since Vidant Health closed Pungo District Hospital. In the hearts and minds of this rural community and knowledgeable outsiders, there is little doubt that Vidant Health never intended to keep Pungo Hospital operating.

    Pungo Hospital, like many rural hospitals, was no stranger to financial problems having filed bankruptcy in 2001. Facing costs associated with overstaffing, fiscal mismanagement and failure to install federally mandated technology, etc. the Board of Directors were desperate to find a way to keep the Hospital open.

    At the same time Vidant Health was acquiring 2 local midsize hospitals (Duplin and Beaufort County) that were floundering financially in amounts far greater than Pungo's $1.5 million loss. It is a well known fact that Rural Hospitals are not designed to be profitable. If they break even, they're doing well.

    Some have raised concerns about the current financial status of Vidant Beaufort Hospital. Since 2011 there has been a loss of transparency in Vidant's financial reports. This is due to Vidant's decision to utilize Consolidated Reporting. Financial data for Vidant hospitals is "Blended and Combined" into Vidant Health the parent company. Even Vidant Medical Group (Physicians) finances are no longer reported separately, making promises of transparency null and void.

    As time goes by more and more pieces of this tangled mess are coming to light. Belhaven Town Mayor Adam O'Neal has laid his personal and political life on the line for his people. Few individuals possess the tenacity and perseverance to take a stand against injustices such as those that have been visited upon Belhaven citizens.



    On the other hand, we have a small group of individuals - Pantego Creek, LLC. whose leadership is indebted to Vidant's seed money - $50,000 set up and $10,000 for application for Tax Exempt Status. According to a CPA, this process that should have taken about 6 months instead ended up taking 3 years from September, 2011 until October 2014.

    After several attempts Pantego Creek, Llc. received a 501-c-3 status with a specific category 509-a-3.

    c) Section 509(a)(3): "Supporting Organizations - an organization that is organized and operated exclusively for the benefit of one or more organizations

    According to the IRS 990 annual reports, Pantego Creek's stated mission:

    "To support Pungo District Hospital ...to ensure compliance with the operating agreement signed between Pungo District Hospital and Vidant Medical Center."

    Pantego Creek, Llc.'s stated mission and sole purpose as submitted to the IRS is no longer valid. Vidant closed Pungo Hospital and transferred the property deed to Pantego Creek.

    Pantego Creek, Llc.'s reluctance to release the property deed to the Town may be a sign that they no longer trust Vidant to live up to its commitment. Once the new Medical Office Building (MOB) opens will Pantego Creek turn the deed over to the Town?

    The new Belhaven MOB is scheduled to open in June. In a request to the NC DHHS Certificate of Need (CON) office for an exemption from review, Vidant stated no new services will be offered and since Vidant intends to pay for the MOB out of reserve funds, no State oversight would be required. The initial cost summary estimated the MOB would cost $4.3 million. That now has reportedly increased to $6 million. The property is now deeded to Vidant Medical Group (Physicians) for tax purposes.

    Originally promised to be open 24/7 year round, a later Vidant document sets a 3 year term and possible reduction of hours. There is some question of the utilization of the Helipad which requires stabilization of patients being transferred by helicopter. The fact remains 25,000 individuals are being denied emergency services in a rural area in which life-threatening accidents are a known factor.

    There is a sense of urgency because there has been movement by a Pantego Creek member that threatens "demolition". In recent weeks, an environmental contractor was hired which is one of the first steps to demolition. The town people have taken this possibility seriously and have setup a 24/7 campsite across from the Hospital building.

    In 2014 Vidant agreed "to contribute an amount up to $800,000" for the express purpose "to demolish and remove all or any improvements....." to the (hospital) property. Additionally Vidant offered extensive help in vetting a demolition contractor, obtaining a fixed price proposal and assured the LLC. assistance if the price proposal exceeds the $800,000. All the Llc. has to do is "say the word" and "Vidant shall cause the Demo Work to be performed and completed promptly by the Contractor".

    Reviewing Pantego Creek's financial data in the IRS 990s show they have little, if any, cash on hand but they reported non-cash contributions in 2014 with cash value of $840,400. After selling a single land parcel of the hospital property to a member for $100,000 (which had a tax value of almost $400,000) they applied this money toward mounting legal bills and paid their Beaufort County Tax Bill ($35,000+) just a few weeks shy of the public release of Delinquent Taxes.

    It all came to a head on April 30th. Reverend William Barber, State NAACP Head and Mayor O'Neal held a Press Conference to end all press conferences. No holds barred! They jointly announced the filing of formal complaints with the Department of Justice U.S.Attorney General Loretta Lynch to an audience of about 50 residents, NC NAACP representatives and Belhaven town officials.

    Rev. Barber filed for an investigation by the U.S. Department of Justice Civil Rights Division into the surprise removal of Superior Court Judge Milton Fitch, Jr. from the case remanded to him, allegedly without notice. Judge Fitch is one of a few minority Judges in Eastern NC. He was replaced with a White judge. Was proper court process followed?

    Rev. Barber pointed out "This is a serious issue. What kind of shenanigans was pulled behind the scenes?" He cited examples of Vidant's attempts to defraud and undermine justice in the court system, undue influence and interference in the settlement attempts between Belhaven and Pantego Creek.

    Mayor O'Neal filed a lengthy detailed Anti-Trust Complaint citing numerous allegations against Vidant and Pantego Creek, Llc. Several exhibits were included substantiating the allegations. Clean Hands and Transparency are not now and never have been strong suits of Vidant Health.

    Sources:

    2012/2013 IRS 990s - Pantego Creek, LLC
    Beaufort County Tax Office
    2014 Transfer Agreement executed by Pantego Creek, Llc. managers and Vidant Health