Wayne Memorial signs with UNC
By Steve Herring
Published in News on December 17, 2015 2:12 PM
Wayne Memorial Hospital's board of directors Tuesday night voted to authorize its executive committee to sign a management services agreement with UNC Health Care, the state-owned not-for-profit integrated health care system based in Chapel Hill.
The contract will not involve any sale or exchange of assets, and will allow the hospital board to maintain local governance of the hospital.
A formal agreement has yet to be signed, but both expect to have a formalized plan in place in the near future.
Hospital employees will keep their current jobs and will remain employees of Wayne Memorial Hospital, a private, not-for-profit hospital, not the state.
A hospital press release did not mention or explain the financial arrangement between the hospital and UNC Health Care.
However, in a September interview with the News-Argus, Wayne Memorial Hospital board Chairman Jim Parker said that depending on the agreement, the hospital would pay a flat dollar amount, and possibly a percentage of revenue similar to a profit share.
Parker could not be reached for further comment prior to press time Thursday morning.
The agreement is the outgrowth of an exploratory committee appointed to find a new CEO following Bill Paugh's announcement in April that he will retire at the end of the calendar year.
Paugh has served as CEO for the past 15 years.
The committee was eventually split into two committees to weigh all of the options including selling the hospital and entering a management services agreement.
UNC Health Care and Wayne Memorial Hospital will appoint an interim leader, and a formal search for a permanent president and CEO will begin immediately.
In September, the Wayne Memorial Hospital board announced that it would send out a request for proposals to several larger hospital systems to gauge interest in forming a partnership.
The hospital board has held all of the negotiations behind closed doors, citing their competitive nature.
Parker told the News-Argus in September that such partnership could help the hospital achieve significant cost savings, enhance patient care and increase hospital-based clinical services for patients.
"Our decision signifies Wayne Memorial Hospital's commitment to provide the best health care possible for all of our patients," Parker said. "An affiliation with UNC Health Care will allow us to be better prepared to meet the challenges of the future and will strengthen our position as a community hospital.
"We look forward to building a strong partnership with UNC Health Care and we're proud to become part of UNC's longstanding tradition of excellence."
Parker said the affiliation will allow Wayne Memorial Hospital to provide a broader scope of resources to benefit its patients.
Hospital officials said some of the primary benefits include:
• Expansion of locally available hospital and community based patient care services to enhance patient care.
• Improved patient experience and satisfaction.
• Enhanced operational efficiency.
• Recruitment of additional highly trained and skilled physicians.
• Access to cutting-edge research and treatments at UNC Health Care.
"We are pleased to affiliate with Wayne Memorial Hospital and welcome them into our system," UNC Health Care CEO William L. Roper, MD, said. "This partnership combines the successful health care delivery at Wayne Memorial Hospital with the managerial experience and capabilities of our system.
"Wayne Memorial Hospital will help advance our system's mission of providing excellent care, training the next generation of North Carolina's physicians, and conducting groundbreaking research."
Wayne Memorial Hospital is a 316-bed community, not-for-profit hospital, which has been serving residents in Wayne County and surrounding areas for 120 years.
With 1,700 employees, its mission is to provide quality healthcare services through the compassionate hands of well-trained staff in a technologically advanced, cost-effective manner, hospital officials said.
For more information, visit www.WayneHealth.org.
UNC Health Care is comprised of UNC Hospitals, ranked consistently among the best medical centers in the country; the UNC School of Medicine, a nationally eminent research institution; community practices; home health and hospice services in seven central North Carolina counties; Pardee Hospital in Hendersonville; Chatham Hospital in Siler City; High Point Regional Health System in High Point; Johnston Health in Clayton and Smithfield; Caldwell Memorial Hospital in Lenoir; Nash Health Care in Rocky Mount; UNC REX Healthcare and its provider network in Wake County; and the UNC Physicians Network.
It exists to further the teaching mission of the University of North Carolina and to provide state-of-the-art patient care.
More information about UNC Health Care visit http://www.unchealthcare.org.