ASHEBORO - Randolph Health announced today that it has filed a petition for relief under Chapter 11 protection of the United States Bankruptcy Code in the Middle District of North Carolina. The Chapter 11 process, which would resolve Randolph Health’s debt and help secure a partner or successor health system for Randolph County, is the most recent step in a planning process to maintain local health care access.
Importantly, Randolph Health will continue to operate under normal course of business during the Chapter 11 process. Patients will have the same access to their health care provider and services with no interruption of care. Randolph Health has also taken necessary steps to ensure employees do not miss a paycheck and continue to receive a benefits package. Randolph Health will continue to pay salaries and fees to physicians and employees, purchase supplies and equipment and ensure access to quality health care during this process.
“Restructuring our debt is something that we have been talking about for some time now, and this filing is simply the next step in a planned process to ensure the future of health care for the people of Randolph County,” said Angela Orth, CEO of Randolph Health. “Over the past three years, we have undertaken significant efforts to strengthen financial operations, identify a long-term path forward and ultimately protect Randolph County’s health care future.”
The current dynamic atmosphere in health care across the United States and in North Carolina led Randolph Health to begin exploring various options to protect local health care three years ago. Amidst industry challenges and headwinds, Randolph Health’s leaders have worked hard and improved its operating margin by $9.3 million in FY 2019, and the system continues to perform well financially in the first quarter of FY 2020.
“We are making strong progress to secure the future of health care, and this important work continues,” said Orth. “Like many hospitals and other businesses across the country, our team of expert financial advisors has counseled that restructuring the system’s debt is necessary to improve our financial position and allow us to continue our work to protect health care access here in our community.”
“Chapter 11 protection supports our ongoing efforts and is one of several critical steps in sustaining quality care delivery in Randolph County,” explained Orth. “Our number one priority is to do everything we can to protect health care in this region for all those who depend on us. Nearly 150,000 Randolph County residents depend on local health care, and we will continue providing them with the same quality care by the same experienced physicians and nurses in the same location.”
“Our efforts to preserve our health care future are focused on a deliberate and thoughtful process that keeps patients, employees and caregivers first in mind,” Orth continued. “We expect the Chapter 11 process to be completed this year.”
The health system’s work continues, including a full exploration of all options and ongoing conversations with City, County and State government officials, Cone Health and other potential health care partners, as well as the potential loan available through the Rural Health Stabilization Program.
“We appreciate the dedication and hard work of everyone at Randolph Health and the ongoing support from our community,” said Orth. “Delivering the exceptional, compassionate care patients need and deserve always has been, and continues to be, our primary focus. As always, we will continue to provide patients, employees and the community with more information regarding the process as it develops.”
To learn more about Randolph Health’s Chapter 11 filing, visit www.RandolphHealth.org.
About Randolph Health
Randolph Health is a comprehensive, community-based health system based in Asheboro, North Carolina. We are a nationally recognized health and wellness system, combining the best of health technology and highly trained and certified medical professionals with personalized care designed to support the unique needs of each patient and their family. Through our 145-bed hospital, extensive network of primary care and specialty physician offices, outpatient rehabilitation centers, homecare services, advanced imaging and accredited cancer center, we offer access to the latest care and treatment. But we believe that great clinical care alone is not enough. That’s why we have a reputation for providing a care experience that recognizes the dignity of each human being–treating each person we serve as a person, not a number.