Staff Writer
tbullard@yadkinripple.com
The Yadkin County Board of Commissioners approved the sale of Hoots Memorial Hospital for $1.6 million to a private company that promised the construction of a new county hospital in four years.
“I’m very glad that all of the hard work and the attorneys and the board of commissioners has finally come to fruition,” said Yadkin County Board Commission Chairman Chad Wagoner.
The deal, which has been in the works for three years, will mean the management company currently operating the hospital, HMC Management, will relinquish its role in the day-to-day operations to CAH Acquisition, which will pay the county $1.6 million for Hoots Memorial Hospital's building and its contents. The county will retain ownership of the real estate on which the structure stands.
“I think it’s a great thing for the county. Hopefully we can go forward now, and hopefully within the next four to five years we will have a new hospital to serve the county. It’s just a great thing for the county. It impacts more than just the health of the county. Looking at it from an economic development standpoint, you have companies that come in here, they see two new middle schools, they see a hospital built, that looks good for development,” said Wagoner.
While CAH operates the hospital, which will now be called the Yadkin Valley Community Hospital, it will be planning for the eventual construction and opening of a $15 million facility four years from now.
“I’m very glad that all of the hard work and the attorneys and the board of commissioners has finally come to fruition,” said Board Chairman Chad Wagoner.
“I think it’s a good move for Yadkin County,” said Board member Brady Wooten. “I think it will improve health care in Yadkin County and be a direct benefit to most all citizens. We have some modern health care facilities in our community.”
The current CEO of the hospital, Ted Chapin, was excited about the future of the facility. “I’m very excited. The commissioners have been working very hard to make this happen. Some really wonderful things are going to happen for this community now. There has been a lot of concern as to whether or not the hospital is even going to be viable, but HMC is going to put the resources into it, and we’re going to build a new hospital, and Yadkinville will have a brand new hospital in a few years.”
John L. Crill, special counsel for Parker Poe, Adams & Bernstein LLP in Raleigh, and County Attorney James Graham have been communicating with each other for a long time over the sale.
Crill said HMC will continue it involvement with the hospital as it maintains insurance coverage for possible legal that might arise from any incidents, excluding potential medical malpractice suits, that might have occurred over the last three years.
“Does that cover the doctors also?” asked Garner. “They have their own insurance,” Crill replied. “That is an expensive insurance policy when a hospital changes ownership. The purchase price is $1,600,00 plus any liabilities.
Crill said the transaction includes the agency will lease the hospital for up to four years and then will acquire land and start planning a hospital with the approval process, which is "not easy" with the certificate of need required by the state. “It will be a one-story building with 25,000 square feet with the ability to increase the size to 40,000 square feet based on its construction,” he said.
“The buyers will extend offers of employment to all employees who are employed by the hospital on the closing date,” he added.
They will be paid the same with non-stop benefits. CAH Acquisition Co. is located in Kansas City, Mo. It will pay rent of $1 per square foot for four years. There is a discrepancy of the total square feet, which will be reconciled.
On Nov. 2, 2009, the board had a public hearing and adopted a resolution for the lease and sale.
On Feb. 15 the board had a public hearing and finally Monday night the deal came to fruition.
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