Release date: 1/16/2019
(RALEIGH) Attorney General Josh Stein today announced that he does not object to HCA’s acquisition of Mission Health System’s assets. As a result of extensive negotiations with the Attorney General’s Office, HCA has strengthened its commitments to provide healthcare services, the Dogwood Health Trust has agreed to make its board more representative of the communities it will serve, and the parties have agreed to enforcement measures that will ensure compliance with this agreement. These commitments will be included in a revised asset purchase agreement and letter agreement. More information about these commitments is available here.
“Access to healthcare is truly a life or death issue,” said Attorney General Josh Stein. “We kept that fact in mind as we conducted our review of this transaction. After extensive negotiations, I am satisfied that this new agreement protects healthcare in western North Carolina, ensures that the full value of Mission’s assets will continue to be used for public purposes, and requires that the Dogwood Health Trust will be independent and representative.”
“I am also pleased that HCA agreed to enforcement measures – this ensures that my office has the ability to take legal action should HCA fail to comply with the commitments it has made.”
Under statute, the Attorney General has the right to review any transaction in which a nonprofit corporation sells substantially all of its assets. The Attorney General has dedicated substantial department time and resources in carrying out this responsibility regarding the sale of Mission Health System. Since May 2018, this review and negotiation has been a top priority of attorneys in the Department of Justice.
A copy of the letter can be found here.
A comparison of the key terms of the agreement before and after the Attorney General’s Office negotiations can be found here.
A map of the future Dogwood board can be found here.
Laura Brewer (919) 716-6484