July 16, 2008
UNC Health Care, Chatham Hospital sign letter of intent for hospital purchase
Representatives of the UNC Health Care System and Chatham Hospital have signed a letter of intent for UNC Health Care to purchase the 25-bed critical access facility in Siler City, N.C., for $11.3 million.
“UNC Health Care has worked closely with Chatham Hospital for more than 10 years, and has been managing Chatham Hospital since 2006,” said Laura Clapp, Chair, Chatham Hospital Board of Trustees. “The two organizations have a great working relationship, and we believe that now Chatham Hospital and the people it serves will enjoy additional benefits from a more structured relationship with UNC Health Care.”
The primary goals of this proposed transaction are to continue to operate Chatham Hospital as a charitable organization; to maintain the identity and viability of Chatham Hospital in its service area; and to enhance the delivery of high quality, cost effective care to patients in the parties’ service areas.
Under the terms of the letter of intent, UNC Health Care would acquire 100 percent control of Chatham Hospital and its assets by becoming the hospital’s sole corporate member. Chatham Hospital would remain a separate, tax-exempt corporation and licensed and certified operator of the facility. All current liabilities and long-term debt of Chatham Hospital will remain in place.
In addition, UNC Health Care will:
- Assume control of Chatham Hospital’s $34.7 million in liabilities;
- Transfer to Chatham Hospital $2 million;
- Commit $9.3 million to develop health care services in Chatham County over the next 7 years. Initial priorities at the Chatham Hospital campus in Siler City include medical office building space development, expansion of radiology services and improvement of information systems.
Under the proposed arrangement, the Chatham Hospital Board of Directors will continue to be responsible for the day-to-day management of the hospital’s operations. UNC Health Care will continue to provide management support. Carol Straight, who was appointed chief executive officer at Chatham Hospital in 2006, will continue as CEO. Chatham Hospital will remain a private, not-for-profit hospital and all staff will continue to be employed by Chatham Hospital. There are no plans for staff layoffs or a decrease in the number of employees.
This announcement comes as the new Chatham Hospital building is nearing completion. The new site is located in the Central Carolina Business Campus. Its location on major transportation corridors makes the hospital more accessible to the public. Of the 25 beds, 21 are dedicated for general medical/surgical care and four are dedicated to intensive care services. Services available include physical therapy, x-ray, laboratory, respiratory care, sleep studies, echo cardiograms, pharmacy, outpatient infusions, inpatient and outpatient surgery and endoscopies. In addition, the new facility features an expanded emergency room.
Media contact: Tom Hughes, 919-966-6047, email@example.com
ABOUT UNC HEALTH CARE
The UNC Health Care System is a not-for-profit integrated health care system owned by the state of North Carolina and based in Chapel Hill. It exists to further the teaching mission of the University of North Carolina and to provide state-of-the-art patient care. UNC Health Care is comprised of UNC Hospitals, which is ranked among the top 50 in the nation in six specialties by U.S. News & World Report and ranked one of the country’s 41 best on the Leapfrog 2007 Top Hospitals list; the UNC School of Medicine, a nationally eminent research institution; community practices; home health and hospice services in seven central North Carolina counties; and Rex Healthcare and its provider network in Wake County.