090319 Randolph Health
Closed Session – Randolph Health — September 3, 2019
At 8:20 p.m., the Board convened in closed session pursuant to North Carolina General
Statutes Section 143-318.11 for the purpose of discussing competitive healthcare activities by or
on behalf of Randolph Health, which discussion is privileged and confidential pursuant to North
Carolina General Statutes Section 131E-97.3, as is permitted by North Carolina General Statutes
Section 143-318.11(a)(4). Chairman Darrell Frye, Vice-Chairman David Allen, and
Commissioners Kenny Kidd, Maxton McDowell, and Hope Haywood were present. Also present
were County Manager Hal Johnson, Finance Officer Will Massie, County Attorney Ben Morgan,
Associate County Attorney Aimee Scotton, and Clerk to the Board Dana Crisco.
Chairman Frye gave an update on Randolph Health (Hospital). He said that the Senate Bill
681 providing the Rural Health Care Stabilization Act has gone nowhere. Negotiations on the Bill
are ongoing between the House and Senate. He said it appears the Bill only has a 60% chance to
pass at this time.
Chairman Frye stated that the Cancer Center at Randolph Health is still 40% owned by Cone
Health, but Hospital legal and bankruptcy representatives have indicated to the Hospital’s
Restructuring Committee that Cone Health appears to have many other corporate priorities which
may impact Cone Health’s ability and desire to partner with the Hospital in a three-year
reorganization plan.
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The financial situation of the Hospital is now dire. The October 15 payment to the bank would
take all of their money. In addition, the facility needs a new boiler and the IT system used at the
Hospital is obsolete and cannot bill for Medicaid Expansion. Filing bankruptcy is inevitable now.
The Commissioners agreed that a press release from the County would be needed when the
Hospital goes public with filing bankruptcy. Mr. Morgan suggested, “The Board was prepared to
help but money never materialized. A small county like Randolph cannot afford the expense since
it is already committed to Capital expenses for the Detention Center, Asheboro City Schools, and
Randolph County Schools.
At 9:05 p.m., on motion of Allen, seconded by McDowell, the Board voted unanimously to end
closed session and return to open session.
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Darrell L. Frye, Chairman David Allen
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Kenny Kidd Maxton McDowell
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Hope Haywood Dana Crisco, Clerk to the Board
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