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A breakdown of 3 proposals for New Hanover Regional Medical Center

Three health systems are competing to expand their footprint in North Carolina by securing a deal to partner with or own New Hanover Regional Medical Center in Wilmington, N.C. 

The systems selected as finalists each gave a presentation on their proposals last week. 

Below is a breakdown of the three proposals: 

Atrium Health (Charlotte, N.C.)

Atrium Health committed to spending $3.1 billion to enter into a 40-year, long-term operating lease and make improvements to New Hanover Regional Medical Center. Atrium said it would pay $941.8 million, including $50 million in upfront cash to the county, lease payments and community foundation funds. It also said it would invest up to $2.17 billion for capital improvements. 

Under the deal, if selected, New Hanover Regional would maintain a local governance structure, and also have two seats on Atrium Health's board. Atrium Health also vowed to keep the staff currently employed at the hospital and o to boost its staffing levels. 

Atrium Health is affiliated with the University of North Carolina in Chapel Hill and has more than 52 teaching programs and 490 residents and fellows. It promised to maintain those programs for more than 10 years and l seek more medical education opportunities with New Hanover through its partnership with Wake Forest Baptist Health and the Wake Forest School of Medicine, both based in Winston-Salem. 

Duke Health (Durham, N.C)

Duke Health proposed purchasing New Hanover Regional for $1.4 billion and investing $1.9 billion in capital improvements over the next five years.

Under the deal, Duke Health said it would keep all hospital employees on staff for at least one year after the transaction closes and pay employees similar compensation and benefits for that same time period. After the year mark, compensation will remain market-competitive, Duke Health said. 

Duke Health plans to establish a local board at New Hanover Regional, which would be filled with local physician representatives and other ex-officio voting members. Two individuals from New Hanover would be nominated to serve on Duke University Health System's board. 

The health system also said it would bring its graduate medical school programs to New Hanover Regional and said it would  collaborate with New Hanover to recruit talent and enhance any existing provider relationships. 

Novant Health (Winston-Salem, N.C.)

Novant Health committed to investing more than $5 billion in its bid to partner with, manage or own New Hanover Regional Medical Center. The commitment would include up to $2 billion in upfront cash to New Hanover County and $3.1 billion for capital projects. Novant said the financial commitment to the New Hanover hospital will ensure support for "information technology and quality initiatives, improvements to existing facilities, new construction and other strategic capital."

Novant said in its proposal that it is willing to pursue an affiliation, joint venture or acquisition of New Hanover Regional. Novant said the New Hanover Regional would have a representative on its board if a joint venture is formed, or two members if Novant becomes its parent company.

Novant also said that any partnership pursued will not negatively affect employment levels, and no employment changes would be made without approval from New Hanover Regional.  The system also committed to increasing the number of jobs in the county by establishing a new shared services center and basing a corporate department in Wilmington. 

In addition to the financial commitment, Winston-Salem, N.C.-based Novant said it will partner with Chapel Hill, N.C.-based UNC Health and its medical school to expand the medical education program at New Hanover Regional Medical Center, including enhancing the long-standing pediatric program.

More articles on healthcare industry transactions: 
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