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February 5 - 18, 2021
wilmingtonbiz.com
Greater Wilmington Business Journal
| HEALTH CARE |
Post-sale, changes underway at NHRMC BY NEIL COTIAUX
W
ith a historic transfer of ownership Feb.1, New Hanover Regional Medical Center ended nearly 53 years as a county-owned hospital and became part of Winston-Salem-based Novant Health. Signs and banners on the NHRMC campus marked Day One of the union of the two hospital systems, but no large-scale event was held in keeping with pandemic-related restrictions. NHRMC names and logos will continue to be used until a final decision is made on branding, officials with NHRMC and Novant Health said. As with most acquisitions, some operational changes will occur over time, but it was mostly business as usual on the NHRMC campus on Monday for the Wilmington-based system’s 7,500 employees. “Today has to be the most exciting time in our history, and it’s not just me. You know this is exciting for our patients and our community because this really gives us the opportunity
to do so much more for our region,” said John Gizdic, who greeted hospital employees Monday morning sporting a Novant pullover. Gizdic, president and CEO of NHRMC, now absorbs the title of president of the Novant Health greater Eastern market, as Novant establishes a hub in this part of the state. Novant Health, a not-for-profit health system, operates a network of hospitals, physician clinics and outpatient facilities across North Carolina, South Carolina, Georgia and Virginia. It already operated Novant Health Brunswick Medical Center, which now falls under the structure of NHRMC. The nearly $2 billion purchase – as well as additional commitments for future capital investments and agreement with UNC’s expanding medical program at NHRMC – sets Novant up to significantly grow its presence in Southeastern North Carolina. “We will invest a lot in the community, but we want to make sure
we’re prioritizing, what physicians, team members, the local board and the local management team advises to start with,” Novant CEO Carl Armato said. Integration will take time, Gizdic said, adding “you want to do this very thoughtfully and make sure we do this appropriately.” While a number of details still need to be worked out, there also are many decisions already made. NHRMC’s agreement to manage Pender Memorial Hospital, for example, has been extended an additional two years over the current term. “We are expanding our pediatric specialties,” Gizdic also said, “and we’ll be getting those in place over the coming months, as well as new clinical research opportunities that are launching in the very near future. A lot of exciting things that are starting, but a lot more to come.” One group of hospital patients did, however, experience immediate change.
CHARITY CARE
As of Feb. 1, Novant’s purchase of NHRMC widened the scope of charity care available to individuals facing financial difficulties, raising the qualification level for such care from 200% of the federal poverty level to 300% as Novant’s more liberal policy took hold. The federal government’s 2021 poverty level is set at $26,500 for a family of four. Novant’s 300% ceiling for charity care means that families of four with an income of up to $79,500 and no health insurance are eligible for the program’s 100% writeoff, as long as they meet requirements that include a lack of substantial cash-on-hand and receiving only medically-necessary services. According to July 2019 U.S. Census Bureau estimates, 11.7% of New Hanover County residents under the age of 65 had no health insurance.
JOBS AND BENEFITS
The agreement to buy NHRMC enshrined Novant’s pledge to retain all of the Wilmington system’s
