011420 Randolph Health
Closed Session – Randolph Health — January 14, 2020
At 1:31 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, Commissioner
Kenny Kidd, and Commissioner Maxton McDowell were present. Commissioner Hope Haywood
was absent. Nexsen Pruet Counsel for Randolph County and the City of Asheboro present were
Christine Myatt and John Skvarla,. Randolph County staff present were County Manager Hal
Johnson, Finance Officer Will Massie, County Attorney Ben Morgan, Associate County Attorney
Aimee Scotton, Deputy Clerk to the Board Sarah Pack, and Clerk to the Board Dana Crisco.
Randolph Health representatives present were CEO Angie Orth, Ankura Senior Managing Partner
Louis Robichaux, Board Chairman Mack Pugh, Attorney Robert Wilson, Restructuring Advisor
Chris Hebard, and Board Member Reynolds Lisk. City of Asheboro representatives present were
Councilman Walker Moffitt, Mayor David Smith, and City Manager John Ogburn.
Randolph Health representatives updated the Board on the restructuring process and the
preliminary plan that will be submitted with the application to apply for the Rural Health Care
Stabilization loan. They noted it was still ever changing. Chairman Frye asked if the
Commissioners would have the opportunity to give input and review prior to him signing the plan
on behalf of the County Commissioners. The response from Mr. Robichaux was yes.
There was a question as to who would be on the Board of Randolph Health 2.0. This board
would oversee the three year term of the interim hospital while a successor organization was
preparing to take over the market. During a review of the proposed future legal entity overview
and transition operator projections, Mr. Robichaux highlighted that the Randolph Hospital
Community Health Foundation, Inc., would be part of the transition and empowered as an
enforcement vehicle to uphold Successor commitments. Commissioner Kidd said that this was
the first time the Board of Commissioners had been notified of such a proposal and he would be
totally against such a role for the Hospital Health Foundation. He said that this would bring
persons back into the transition process that had previously supported decisions leading to the
current financial crisis at Randolph Hospital. Commissioner Kidd said that this proposal would
be a “deal breaker” for him in supporting the use of $20 million in taxpayer funds. The other
Commissioners agreed that the Hospital Health Foundation would not be the enforcement vehicle
to uphold Successor commitments. After further discussion, the consensus among the Board and
the Randolph Health representatives was to create a seven seat board. The seats would be filled
as follows:
two seats — Randolph County Commissioners
one seat — City of Asheboro representative
one seat — Randolph County Commissioner appointment
two seats — two previous Randolph Health Board members
one seat — successor health care system representative
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Ms. Myatt noted the constant change of circumstances for the Randolph Health restructuring.
She agreed to keep the Chairman informed of changes as they occurred.
At 4:54 p.m., on motion of Allen, seconded by Kidd, the Board voted unanimously to end the
closed session.
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Darrell L. Frye, Chairman David Allen
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Kenny Kidd Maxton McDowell
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Dana Crisco, Clerk to the Board
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