ASHEBORO – The Board of Directors and the leadership team at Randolph Health announced today the organization has an agreement with a new buyer, American Healthcare Systems, LLC, to acquire substantially all of Randolph Health’s operating assets.
Recently, Randolph Health finalized an agreement with The DAVA Foundation, Inc. to acquire substantially all of Randolph Health’s operating assets and for Java Medical Group to manage the new organization. The agreement was subject to bankruptcy court approval.
Part of the bankruptcy court approval process included an opportunity for other organizations to submit bids to purchase some or all of Randolph Health’s operating assets. Multiple qualified bids were submitted. In such situations, the next step in the bankruptcy process requires an auction to take place between the qualified bidders.
“The bankruptcy process is confidential until a winner is determined. Today, we are pleased to share that American Healthcare Systems, LLC, is the successful bidder. American Healthcare Systems will acquire substantially all of Randolph Health’s operating assets and will oversee our new organization’s operations, working closely with the local leadership team,” said Angela Orth, chief executive officer of Randolph Health. “This new agreement replaces the previous agreement with The DAVA Foundation and will now progress through the remaining aspects of the bankruptcy process with the goal to finalize the purchase transaction no later than early in the first quarter of 2021. This plan is subject to final bankruptcy court approval and other requirements must be met to close this deal.”
American Healthcare Systems, LLC, founder Mike Sarian has extensive expertise in health care management. He is a former executive with Prime Healthcare, an award-winning health care operator with a significant track record of success and operates 46 hospitals and more than 300 outpatient
locations in 14 states. During his time at Prime Healthcare, Mr. Sarian’s focus was on the revival of healthcare facilities in distressed financial situations.
The agreement with American Healthcare Systems will keep the hospital open, ensuring continued local access to the health care services that Randolph County residents have today while preserving the jobs of Randolph Health employees.
“An advantage to this agreement with American Healthcare Systems is partnering with an organization that has extensive expertise in health care management and a willingness to commit the capital to invest in the aging facility infrastructure and new equipment. We are encouraged by the progress we are making toward preserving access to local, high-quality health care for years to come,” said Orth.
The commitments in the agreement achieve the goal of securing local access to health care today and long into the future. If approved through the bankruptcy process, the agreement will provide the ability to:
- Ensure ongoing local access to high-quality health care services in Randolph County, including a sustainable acute-care hospital with an appropriate number of licensed inpatient beds and other services that are essential to our community’s health.
- Provide important services that are currently offered at Randolph Health, including labor and delivery, emergency care, inpatient services, outpatient services, imaging, surgical care, home health, primary care, specialty care, services provided at Randolph Cancer Center and StayWell Senior Care, and more.
- Provide a smooth transition to help ensure patients continue to experience the same great care from the same providers and caregivers they have today.
- Protect jobs and continue to invest in the development of our employees and providers. All current Randolph Health employees and employed physicians would be offered the opportunity to be employed by the new organization.
- Provide the ability to keep local input and oversight. The proposed agreement assures that a new Randolph Health Board of Directors would include representatives from Randolph County government.
- Ensure the long-term viability of Randolph Health by financially investing in improving resources and equipment.
The goal is to finalize the purchase of Randolph Health by no later than the first quarter of 2021. The agreement is subject to bankruptcy court approval and will progress through the normal course of the bankruptcy process. Standard regulatory approvals will also be required.
Randolph Health provides vital, local and high-quality health care access. On an annual basis, Randolph Health delivers more than 700 babies and performs more than 4,000 surgeries. Additionally, more than 38,000 patients visit the ER and more than 700 people access mental health evaluations. With this agreement, Randolph Health would remain a non-profit health care provider and continue its charitable mission and commitment to providing quality care.
This agreement is an important step in the process, and nothing changes. Randolph Health – including all services and clinics – remains open and will continue operating as usual while Randolph Health’s moves through the necessary steps in the bankruptcy process and seeks the Court’s approval of the transaction.
“We have been on an extended journey exploring all options to secure local health care and this milestone moves us one step closer to that reality. The continued dedication and cooperation from city, county and state partners as well as from our board of directors, staff, physicians, volunteers and community has been a testament to when we all work together - great things can be achieved,” said Orth. “We will continue to work hard as we begin to move Randolph Health towards a final transaction no later than early in the first quarter of 2021.”
The County’s Role
Randolph Health has been working closely with the leaders of Randolph County and the City of Asheboro to help secure the future of the hospital. This work is particularly important because of Randolph County’s opportunity to access funds through the Rural Health Care Stabilization Act (RHCSA). The RHCSA establishes a dedicated fund for eligible financially distressed hospitals to transition to sustainable, efficient and appropriately sized health care service models.
The $20 million available for capital improvement and operational needs through the RHCSA is a necessary piece in helping to ensure continued access to local health care. As a result of American Healthcare Systems’ successful bid to acquire Randolph Health’s assets, the Randolph County Commissioners will consider updating the County’s application to access the RHCSA funds available through the State of North Carolina to reflect this important development in Randolph’s process.
For additional information, please visit RandolphHealth.org.
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