Britton Law, P.A.
Free Consultation For Injury Cases
910-401-3356

Consulting firm assesses viability of hospital split

The administrators of a North Carolina hospital group are discussing possible plans to dissolve their business union. As they negotiate several options, they are also considering who will manage the company. Two counties decided they no longer want to be connected with the partnership, in part due to overall dissatisfaction in the medical community.

Specific reasons include cultural differences, a status that is viewed as lower than others, concerns about local health care services and a reduced overall profit margin. However, after the hard work of establishing a business, it might not be as easy to dissolve. A minimum of 75 percent of the hospital board needs to agree to dissolve the business. The business alliance did not technically qualify as a merger since the involved parties both retained financial control of their own facilities. However, the purpose of the group was to work together as a team.

Now board members face the challenging decision of whether to fight to keep the company together or let the dissenting counties leave peacefully. A consulting firm has been retained to help the group assess their options. Considerations include issues such as health reform, expected future growth and competition and demand in the market. The company is expected to finish the analysis by June.

Another serious consideration is looking at who will manage the hospital group. If the group goes their separate ways, they will likely need a new management company. To remain an independent facility is no longer an option because of the economic developments in recent years.

Establishing and dissolving businesses takes careful consideration on the part of all involved. A business attorney might help parties look at a variety of options when making weighty decisions.

Source: Smoky Mountain News, "Due diligence underway on MedWest hospital split," Mike Carter, March 28, 2013

No Comments

Leave a comment
Comment Information

Send Us An Email. We’ll Listen.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Britton Law, P.A.
2850 Village Drive, Suite 206
Fayetteville, NC 28304

Toll Free: 888-811-9738
Phone: 910-401-3356
Fayetteville Law Office Map

Britton Law, P.A. Office

Call Our Law Firm:

910-401-3356 ~or~ 888-811-9738
Consulting firm assesses viability of hospital split | Britton Law, P.A.