The State of NC Healthcare

Carolinas HealthCare System to “manage” Stanly and Scotland

Posted in Grassroots, NC Healthpress, Reform-in-progress by writemyline on 30 January 2009

The Charlotte Business Journal featured an article by Jennifer Thomas this week that announces a management service agreement (MSA) between Carolinas HealthCare (CHS) and two independent NC hospitals: Scotland Memorial Hospital (SMH) and Stanly Regional Medical Center (SRMC). The article, CHS to manage two more hospitals, appeared on January 28.

Thomas writes that CHS’s 10-yr. contract with Stanly begins March 1 and with Scotland on April 1. The article does not disclose the financial terms of the two contracts; however, the article suggests that the 10-yr. contract could mean a merger later on down the road. Russ Guerin, executive vice president of business development and planning at CHS,  is quoted: “managing independent local hospitals is a business line of (CHS).”  He also comments that such agreements have the potential for mergers.

Interestingly, CHS and Stanly’s recent request for a certificate of need for a 40-bed rehab facility was denied by N.C. Division of Health Service Regulation (NCDHSR) because the two organizations failed to demonstrate need and cost-effectiveness. The facility would have been built in Cabarrus County. CHS and Stanly are appealing the State’s decision. 

Both Stanly and Scotland serve local communities and are significant providers of care “close to home.”  People age 65 and over constitute 14.6% of Stanly County’s population. In addition, 20% of the county’s total population consists of disabled citizens over the age of 5. In Scotland County, 11.6% are 65 and up and 22% disabled.  Stanly’s older population exceeds the state/county average of 12.2%; and both, Stanly and Scotland, exceed the state/county average of 17% disabled. (Census Bureau)

“Close to home” care is a big concern for many of the folks affected by big hospitals swallowing up smaller ones. CHS is the 3rd largest public system in the country and the largest in NC. It owns, leases, or manages 25 hospitals from North Wilkesboro NC to Charleston SC, including SRMC and SMH.

See press releases on the Carolinas Medical Center website:

Stanly Regional Medical Center Partners With CHS

Scotland Regional Health Care System Partners with CHS

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: