Issue link: https://beckershealthcare.uberflip.com/i/1242957
8 CFO / FINANCE North Carolina health system files for bankruptcy By Ayla Ellison R andolph Health in Asheboro, N.C., an- nounced March 6 that it has filed for Chapter 11 bankruptcy. Randolph Health leaders have taken several steps in recent years to improve the health system's financial picture, and they've made progress toward that goal. The health sys- tem boosted its operating margin in fiscal year 2019 and continued to see improve- ments in the first quarter of fiscal 2020. Entering Chapter 11 bankruptcy will allow Randolph Health to restructure its debt, which officials said is necessary to ensure the health system continues to provide care for many more years. "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," Randolph Health CEO Angela Orth said in a news release. "Over the past three years, we have undertaken signifi- cant efforts to strengthen financial oper- ations, identify a long-term path forward and ultimately protect Randolph County's healthcare future." Randolph Health will operate as normal throughout the bankruptcy process, which is expected to be completed this year. "Patients will have the same access to their health care provider and services with no interruption of care," stated the news re- lease. "Randolph Health will continue to pay salaries and fees to physicians and em- ployees, purchase supplies and equipment and ensure access to quality health care during this process." Randolph Health comprises a 145-bed hospi- tal, a network of physician offices, outpatient rehabilitation centers, homecare services and a cancer center. n HCA reverses decision to close Florida hospital By Ayla Ellison N ashville, Tenn.-based HCA Healthcare no longer plans to close Plan- tation (Fla.) General Hospital when it completes a new hospital in Davie, Fla., according to the South Florida Business Journal. After failing to win state Certificate of Need approval to build a hospital in Davie, HCA announced plans in 2016 to transfer Plantation General Hospi- tal's license to Nova Southeastern University's campus in Davie. Under the plan, Plantation General Hospital would have shut down services, except for a standalone emergency department, after the license transfer. In 2019, the Florida legislature got rid of the CON law for most hospitals. Now, HCA can build a hospital in Davie and keep Plantation General Hospi- tal open, according to the report. "Due to Florida's Certificate of Need repeal, and the outpouring of support from colleagues, physicians and civic leaders, Plantation General Hospital is proud to remain open to provide needed care to its community," HCA said in a statement to the South Florida Business Journal. HCA said it expects to open the new 200-bed hospital on Nova Southeast- ern University's campus in Davie in early 2021. "We are thrilled to support and operate both hospital campuses in order to continue providing critical services to our Plantation patients while also meeting the growing need for expanded healthcare services to Davie and its surrounding communities," Charles Gressle, president of HCA East Flori- da Division, told the South Florida Business Journal. n NewYork-Presbyterian's operating losses could exceed $450M due to COVID-19 By Ayla Ellison T he COVID-19 outbreak could have a negative effect on NewYo- rk-Presbyterian's operating results in 2020, per a financial disclosure filed March 18. The health system estimates the COVID-19 outbreak could have a negative impact on its operations of between $350 million and $700 million in 2020. NewYork-Presbyterian had expected operating income of $246 million in 2020, but due to the COVID-19 outbreak the system could have operating losses of $104 million to $454 million, according to the financial disclosure. The health system noted that the estimates are based on several assumptions, including that the crisis will last for four months and there will be no insurance recoveries or federal, state or city relief provided. The estimates "may materially change, positively or negatively, as additional facts about the spread of the coronavirus are determined," the system said. Even with the potential financial hit from the outbreak, NewYork- Presbyterian's outlook is stable. The health system has 311 days cash on hand and $3.7 billion of unrestricted investments that are convertible to cash within five business days, according to the disclosure. n