Richardson: Hospital board will not soon choose an affiliate | Eastern North Carolina Now

    With those who were on the fast-track to lease or sell the local hospital down from power, the new Beaufort Regional Health System hospital board will be changing its endgame, according to the Beaufort County Board of Commissioners' representative to the hospital, Hood Richardson, at last night's meeting. The new majority of the hospital board is firmly committed to help the hospital regain solvency and stay independent, said Richardson, and will not be recommending a merger partner to the county anytime in the near future.

    "The board of commissioner's first goal is to try to keep the hospital owned by the county of Beaufort, that hasn't changed. If that doesn't work, then we will do what we have to do in order to continue to have the hospital here and keep it in business," said Richardson. "But, the first goal is for this hospital to belong to the citizens of Beaufort County, and that somebody in another state is not making decisions for us."



    At the June 29 Beaufort County Board meeting, Commissioner Jay McRoy made a motion to direct the hospital board to deliver a recommendation for merger to the county within 120 days. The motion was seconded by Commissioner Al Klemm and carried in a 5 to 2 vote, with commissioners Stan Deatherage and Ed Booth voting against it. At last night's meeting, both McRoy and Klemm reminded Richardson that the hospital board's 120 days to deliver such a recommendation to the county are about to expire.

    "I'm just hoping that the hospital board will expedite or even resolve this as quickly as possible," said Klemm. "How long do you think this could go on before we get to the point where our recommendation, or whatever it is, is rendered?"

    Richardson said that rushing toward a merger isn't necessary now that the power dynamic on the hospital board has shifted. Proponents of bringing in University Health Systems "as soon as possible"--Sandy Hardy, Jack Piland, Sandy Easley and Curtis Potter--have since the June 29, 120-day directive either resigned, requested to not be reappointed or been voted off the hospital board and replaced with those who want to help the hospital remain independent.

    "I'm not going to tell you there's going to be a resolution to it. I know Jay's motion; I know the purpose of the motion. I think it was to get on your horse and get this thing over with so we can all go back to sleep. And what I'm going to tell you is, you may be awake for a long time sitting up nursing this hospital if we can figure a way to keep it," said Richardson. "We have a board at the hospital right now that is committed to keeping the hospital. We haven't had that in the past. We've had a split board."

    Klemm asked if putting off making a decision on a merger could drive the hospital to financial ruin.

    "But you're not going to do it to the point of shrinking away and going bankrupt?" he said.

    Richardson reminded him that straightening out the cash-flow situation at the hospital wouldn't be comfortable, or quick, but that the board would not let the hospital fail. He said that the four bids from prospective partners would remain on the table until the hospital either regained its footing on its own, or asked for outside help.

    "The hospital board has the option within this process, as long as we think that we're making progress in us continuing to own and keep the hospital, of stretching this thing out for a long time...That's why we have the offers. That's why we did what we did with the RFP process. We have flexibility in this process," said Richardson.

    Deatherage asked Richardson if the hospital board was doing everything it could to minimize expenditures and maximize receipts.

    Richardson said that the new auditing company for the 2010 fiscal year was already on the ground doing inventory, as opposed last year's auditors from Dixon-Hughes, who didn't begin until Dec. 2009.

    Booth asked Richardson for more details on exactly how the hospital will fare as an independent not-for-profit entity.

    "If we decide to stay independent, we're going to be limping for a long time," he said. "But the question that I have to ask the board: What do we have in play to keep us limping and not crawling?"

    Richardson said that the hospital board will continue discussing how to increase the hospital's revenue flow at its next meeting on Oct. 12, which will be open to the public. He said that the hospital should know whether or not it can remain independent within the next few months.

    "If I come to you and say that we think we can keep the hospital, which would happen in a matter of months, I will also have a business plan that shows where the revenue's going to come from to be able to keep the hospital," he said.