WINSTON-SALEM, N.C.—Health Management Associates, Naples, Fla., and Novant Health, Winston-Salem, earlier this month said that they have restructured their joint venture over seven hospitals in the Carolinas. Last year, HMA sold a 27% interest in the hospitals to Novant for $300 million. In the restructuring agreement, HMA received Novant's 27% interest in four of the hospitals, while Novant received an operating contract that gives the not-for-profit system a 99% interest in two of the hospitals, according to a securities filing by HMA. At 103-bed Lake Norman Regional Medical Center in Mooresville, N.C., Novant has increased its stake to 30%, the filing said. HMA also made a $6.2 million payment to Novant at closing and will make annual payments of $200,000 for the next 10 years, the filing said. Jim Tobalski, senior vice president of marketing and communications for Novant, said the system had always hoped that its initial passive investment in the hospitals might lead to a more active management role eventually. The two hospitals that it will now operate—59-bed Franklin Regional Medical Center in Louisburg, N.C., and 125-bed Upstate Carolina Medical Center in Gaffney, S.C.—are served by Novant physician practices and, in the case of Franklin Regional, three diagnostic imaging centers in the surrounding regions, Tobalski said. HMA regained 100% ownership of the following hospitals: 136-bed Davis Regional Medical Center, Statesville, and 64-bed Sandhills Regional Medical Center, Hamlet, both in North Carolina; and 120-bed Carolina Pines Regional Medical Center, Hartsville, S.C., and 156-bed Chester (S.C.) Regional Medical Center.
Regionals: Jackson Health Systems cancels contract with Qorval and more news ...
MIAMI—Jackson Health System decided to cancel a $1.8 million contract with Naples, Fla., financial turnaround firm Qorval, which had planned to appoint an executive named in an alleged criminal conspiracy in Chicago as the South Florida system's temporary restructuring officer. Barry Dubin was set to become the restructuring officer at Jackson under a contract approved Oct. 13 by the public health system's board, until news media reported two days later that Dubin, 31, was named by prosecutors as being a key figure in a plan to steal from his former employer, Chicago's Republic Windows and Doors, where he worked as chief operating officer until the company's collapse in December 2008. Jackson Health CEO Eneida Roldan initially said she was going to have Dubin removed from Qorval's six-person turnaround team on Oct. 15, the same night Modern Healthcare published an online story about Dubin's alleged role at Republic (Oct. 19, p. 4). However Qorval said last week that it had mutually decided with Jackson to terminate the entire contract, which was to cost $200,000 a month for up to nine months. “There was mutual agreement that they didn't want that to be a distraction that caused a lack of focus in the community,” Qorval spokeswoman Michelle Ubben said.
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