Dogwood Health Trust notified the North Carolina Attorney General’s Office Tuesday morning that it plans to sue HCA for allegedly violating the terms of HCA’s 2019 acquisition agreement for the Asheville-based Mission Health hospital system, based on HCA’s annual report and the findings of an independent monitor.
Dogwood has notified HCA of three potential instances of violation:
- Provision of emergency, trauma and oncology services at Mission Health
- Failure to remain “enrolled and in good standing” on Medicare and Medicaid
- Issues with the uninsured and charity care policies
HCA, a Tennessee-based for-profit hospital chain, bought western North Carolina nonprofit Mission Health System for $1.5 billion in 2019. The acquisition created Dogwood Health Trust, a foundation that holds the money HCA pays to the nonprofit.
In approving the acquisition, the Attorney General’s Office imposed important stipulations on the agreement agreed to by HCA.
Dogwood has been entrusted with the task of ensuring HCA remains in compliance with these provisions, and the trust has been tasked with hiring an independent monitoring firm to assist in this determination.
The first monitoring firm, Gibbins Advisers, had deemed HCA compliant every year, even as tensions between HCA, its employees and the communities it serves reached a fever pitch. This year, Dogwood replaced Gibbins Advisers with Affiliated Monitors.
Attorney General and Democratic Gubernatorial Candidate Josh Stein Either Dogwood or the attorney general must notify HCA of non-compliance by Oct. 27, giving the agency 30 days to inform Dogwood whether it agrees or disagrees with the findings.
Stein has already filed a lawsuit against HCA over previous allegations of non-compliance, and HCA is also being sued by several local governments in Western North Carolina, which allege the company engaged in monopolistic practices and reduced the availability of health care options in their areas.
This is a developing story and will be updated.
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