Hospital has been sold to NHRMC, the effect of which is unclear.

Quality. Quality appears to be similar to what it was before the conversion. No evidence of substandard services after the conversion was found; the hospital has a good reputation in the community.

Public Health. The sale may have positive health impact on the community as a result of the foundation that was created. The programs funded by the foundation may improve health, housing and education.

Economic Impact

Use of Conversion Proceeds. The sale proceeds have created one of the largest health-related foundations in North Carolina. The foundation is set to distribute roughly $2 million per year, an amount that is equal to the entire New Hanover County United Way budget. The first projects were funded in the Summer of 1997 and Winter of 1998.

Staffing. There have been no net staffing reductions since the sale, although there was some restructuring of hospital clinical and administrative staff. The hospital has actually added services since it was purchased by Columbia/HCA.

Capital Investment. Capital investment in the hospital and its programs has increased since the sale. Several new services have been added and existing ones upgraded, including opening of a Senior Center, the hiring of hospital-based internists to take uninsured cases and the expansion of labor and delivery services.

Taxes. In 1998, the hospital paid about $1.2 million in yearly taxes, $142,000 of which was paid at the local level.

Net Assessment

This conversion received more attention than similar arrangements in North Carolina, including direct assessment by the Office of Attorney General. The sale ensures that the community will have a choice of hospitals, services have expanded, and the foundation created by the sale represents a large community-wide resource that will likely provide many health benefits. The effect of the resale of the hospital to New Hanover Regional Medical Center is unclear. Interestingly, the original sale of the hospital resulted in the creation of a large Foundation that will continue to fund charitable work in the community. Fears that some expressed about losing control of the hospital to persons outside the community have now been allayed.