News and Updates

Replacement Hospital Facts

Good Hope Hospital needs to replace the aging facility and has developed a plan to relocate on a new 64-acre campus in the heart of Harnett County between Buies Creek and Lillington. Click here for additional news and details.

The hospital will be a $33.5 million capital investment in Harnett County. This will be the largest planned investment by any private corporation anticipated over the next several years.
The hospital project will preserve over 200 jobs and we are projecting at least 64 additional positions. The jobs created will be at the skilled and professional level. Other planned commercial development on the campus will add even more jobs over the years.
The project is wholly funded by private financing. No State or local government funding will be used to complete the project.
With a projection of over $40 million in gross revenue, the hospital will become a significant contributor to the County's tax base.
This Medical Complex dovetails with the Harnett County Economic Development's goals. Further, the site selected is adjacent to one of the key commercial/industrial development parks identified in the County's plan.
A new hospital will aid in the recruitment of other industries in Harnett County.
A new Harnett County complex in the center of the county will improve access to healthcare and will reduce the high percentage of patients needing to leave Harnett County for care and treatment.
The new campus will enable the expansion of services offered through Good Hope Hospital clinical affiliation with Duke and UNC.
The project will be centrally located in Harnett County and will reduce transportation distances for EMS services. The centralized location will also benefit other agencies such as Lee-Harnett Mental Health, Harnett County Social Services and the Health Department.

Press Release - September 7, 2004

“Healthy Competition and Patient Choice Promote the Delivery of High-Quality, Cost Effective Healthcare” Don Annis, CEO Good Hope Hospital

Al Taylor, CEO of Betsy Johnson Regional Hospital, recently published a lengthy article in The Daily Record. Mr. Taylor presented his remarks as a series of questions and answers. After reading the replies to his self-directed questions, my reaction was that the title should have read, “All the wrong answers to all the wrong questions.”

Mr. Taylor’s comments are consistent with BJRH’s continuing efforts to mislead the public regarding Good Hope Hospitals’s plans to build a complete centrally located replacement hospital where it will do the most good for the most Harnett County citizens. Further, Mr. Taylor’s comments are another attempt by BJRH to distract the people of Harnett County from BJRH’s intent is to eliminate GHH as a competitor.

As CEO of Good Hope Hospital, I would like to correct, clarify, and add some important issues about GHH and its new hospital.

Question #1 Should Have Read: “Does BJRH continue to mislead the public and to impede Good Hope’s efforts to build a complete replacement facility between Buies Creek and Lillington at a significant cost of its nonprofit healthcare dollars?”

YES. Mr. Taylor attempts to mislead the public by suggesting that a court has denied our efforts to obtain a CON for a replacement hospital. To date, the only judge to rule on the merits of GHH’s proposal is Senior Administrative Law Judge Fred Morrison. He ruled in GHH’s favor, and BJRH is seeking to overturn Judge Morrison’s decision. All other rulings have been on technical, procedural grounds concerning whether GHH’s appeal is in the right court or the time is right for a decision. The State has also consistently stated that GHH has proved the need to be replaced and should be replaced.

Mr. Taylor’s statement that BJRH is not appealing anything is misleading. Although BJRH did not start any legal suit against GHH, BJRH has actively opposed every action taken by GHH to build a complete replacement facility. BJRH has not merely supported the State’s position. It has spent its nonprofit dollars (perhaps now nearing one million dollars) raising its own objections against the approval of GHH’s construction, some objections which are actually contrary to the State’s position. If BJRH were simply supporting the State’s position, why did BJRH spend its money to participate in a four week long hearing? Why not trust the State to resolve its objections to the project? In his list of “other concerns,” Mr. Taylor fails to mention the main “concern” BJRH is facing: the competition presented by GHH intention to continue it mission of providing service to all the people of Harnett County. Quoting the Court’s ruling, “BJRH and CCH realized that they will have a serious competitor, filed comments with the agency opposing the project, and hired attorneys to fight CON approval. BJRH even hired independent consultant Matherlee to testify against the project. Competition will benefit citizens needing health care.”

Question #2 Should Have Read, “Does Good Hope Hospital have a Certificate of Need [CON] to build a complete replacement hospital in a central location?”

NO (not yet). Mr. Taylor discusses a 2001 CON for a partial replacement facility in Erwin that would leave some services in the old buildings. Although BJRH did not oppose the application for this project, BJRH did interfere with GHH’s request for State approval for HUD financing for this project. As Mr. Taylor well knows, a CON without financing will not result in a replacement hospital for Harnett County.

If BJRH really cared about the residents of Harnett County, it would support a complete replacement facility for Good Hope in a central location, farther away from BJRH’s campus so that more citizens would have convenient access to healthcare services. Instead, Mr. Taylor complains that the plan is too large and expensive. In fact, as revealed at trial, GHH’s project has less construction costs per square foot than the cost of BJRH’s own expansion project that the State approved. GHH’s proposed project has $188 construction cost per square foot, which is less than BJRH’s construction cost per square foot of $193. In addition, GHH proposes 2,017 square feet per bed, whereas BJRH’s project has more space per bed of 2,071 square feet per bed. How can BJRH’s project be reasonable but GHH’s project be unreasonable? Obviously, Mr. Taylor does not ask or answer that question. Judge Morrison, after hearing several weeks of evidence, determined that “The applicant [Good Hope Health System, L.L.C.] adequately demonstrated that the proposal will have a positive effect on the cost effectiveness, quality, and access to the services proposed.”

Question #3 Should Have Read “Do BJRH’s “concerns” respect the wishes of the people of Harnett County?”

NO. Apparently, BJRH does not trust the people of Harnett County to know what is in their best interest. After BJRH made public its opposition to GHH, a professional market research firm measured public opinion in Harnett County. The survey results showed that 84% of Harnett County support GHH’s plans to build a replacement hospital in the center of the county. Additionally, the vast majority of clubs and civic organizations, including the County Commissioners and The Harnett County Medical Society have passed resolutions in support of GHH’s proposal. BJRH actually had its attorneys argue that the State should ignore the overwhelming support for GHH’s proposed replacement facility. BJRH has even gone so far as to argue that the public’s position should have no bearing on the State’s decision. Do you want Mr. Taylor and the BJRH trustees making all the decisions involving hospital care in Harnett County? I certainly do not.

Question #4 Should Have Read: “Is one regional healthcare system best for Harnett County?”

NO. The State has never determined that one regional healthcare system would be best for Harnett County.

Mr. Taylor advocates reduced competition and reduced consumer choice as the solution for low cost and high quality healthcare. This scenario would be great for BJRH but disastrous to the cost and quality of medical care for Harnett County residents. Even the U.S. government through the Department of Justice and the Federal Trade Commission disagrees with Mr. Taylor’s solution. Their 361-page report published last month and entitled Improving Healthcare: A Dose of Competition states that “the American free-market system is built on the premise that open competition and consumer choice maximizes consumer welfare even when complex products and services such as healthcare are involved.” The report adds that “Healthy competition equals healthy consumers,” and that “vigorous competition promotes the delivery of high-quality, cost-effective health care.” The government’s two-year study does not support the merger of hospitals and frankly recommends against mergers that reduce competition.

Question #5 Should Have Read: “Are BJRH’s words attacking for-profit healthcare services consistent with its actions?”

NO. Contrary to Mr. Taylor’s representations, BJRH does work with for-profit organizations. In 2002, BJRH partnered with MedCath, a for-profit organization that offers cardiac catheterization services. If you had cardiac catheterization at BJRH, it was actually performed by a for-profit company. (In contrast GHH chose to partner with nonprofit Duke University Health System to provide cardiac catheterization services in Harnett County.) BJRH does business with many other for-profit companies. In fairness, Mr. Taylor should also remind the public that the tax-exempt bonds that finance BJRH’s construction project are held by investors that profit from the interest paid by BJRH on those bonds just as stock shareholders hope to benefit from their equity investment. A vast majority of those bondholders do not live in Harnett County.

Mr. Taylor wants to criticize GHH for partnering with Triad, a Fortune 500 company, that has the financial ability to build a complete replacement facility in Harnett County that will provide jobs and serve as the foundation for further economic development. Triad owns fifty-one hospitals and through its affiliates manages more than two hundred independent community hospitals and health systems throughout the United States.

But in his attack on Triad, Mr. Taylor fails to provide accurate information, including the fact that Triad does not pay dividends to its shareholders. Triad reinvests money into its hospital communities. Mr. Taylor also fails to mention that Triad will invest $34 million into Harnett County and that more money will be coming from Triad into the community in the future.

Evidence at trial demonstrated that Triad provides quality health care and is considered a good corporate citizen by the communities it now serves. The new Good Hope Health System, like Good Hope Hospital, will appoint a local Board for the hospital in Harnett County. Unlike BJRH’s Board, the new hospital Board can and will include members from all over the County. BJRH should not oppose Triad’s multi-million dollar investment in Harnett County that could foster more than $100 million in investment development within ten years.

Question #6 Should Have Read: “Will GHH’s charity care policies change?”

NO. The State has determined that Good Hope’s proposed facility will provide sufficient charity care for the citizens of Harnett County. The evidence at trial verified that GHH has never turned away a patient based on the ability to pay for services and it will not do so in the future. No evidence was presented that Triad had ever turned away a patient for lack of ability to pay. Further, Mr. Taylor’s effort to discredit for-profit hospitals concern for charity care is unfounded. The August 24, 2004, edition of USA TODAY ran a story entitled Scales tipping against tax-exempt hospitals. The article covered Congressional investigations into the behavior of tax-exempt Hospitals which concluded that, “…for-profit hospitals provide similar levels of charity care. A Medicare Payment Advisory Commission report from 2000 shows that the two sectors (tax paying and non-tax paying hospitals) almost equal in the amount of uncompensated care provided, standing at about 4.6% of costs.”

BJRH has repeatedly distorted the facts concerning charity care in an attempt to scare the public. Mr. Taylor wrote about the percentage of charity care being provided at the new facility in the future, but he ignored the actual dollar amounts because that would have discredited his claim. The dollar amount of charity care that will be provided in the replacement facility actually increases over time from 2.4 million in 2001 to nearly 4 million by 2008. If the percentage of charity care goes down, it will be because the total number of patients will go up because more Harnett County residents stay in Harnett County with their medical care dollars.

If BJRH is really concerned about charity care, then why not have two hospitals that can each provide charity care? If GHH is forced out of business due to the inability to obtain a replacement facility, then BJRH will face alone the need for charity care. Ensuring that charity care is accessible to all the people of Harnett County in not BJRH’s real concern here. Being the only hospital in Harnett County is.

Perhaps Question #6 Should Also Have Read “Who will support the mental health community in Harnett County?” The answer is GHH. BJRH does not have any psychiatric inpatient beds and has not indicated any desire to fill this service void if GHH is no longer in existence. Good Hope and Triad have agreed to continue this service.

Question #7 Should Have Read: “Is one hospital located in Dunn what is best for Harnett County?”

NO. The Court agreed that GHH’s proposal “is not in conflict with the applicable policies and need determination.” GHH opened in 1913 as Harnett County’s first hospital, and since BJRH opened in Dunn about twenty years later, Harnett County has enjoyed the choice of two local hospitals. Mr. Taylor fails to mention that GHH is not attempting to add new hospital services in Harnett County. Rather GHH is attempting to move its existing services to a new, more central location farther away from BJRH. There are numerous examples of two or more thriving hospitals in one county in North Carolina. The closest is in Richmond County, a county that has a smaller population and is not growing as fast as Harnett County

Trends on hospital mergers come and go. Recently many merged hospitals failed to accomplish their lofty ambition of improving services and reducing prices and expenses, and several have dissolved. The FTC has investigated hospital mergers in North Carolina over concerns of restraint of trade and broken promises to reduce charges to consumers. In some cases hospital charges actually increased after merger. Further, in a separate study previously mentioned, the federal government does not advocate the merger of healthcare competitors and the reduction of competition in a local market. The findings of the study indicate that prices will increases when the numbers of competitors are reduced.

Prior to learning that GHH was considering an agreement with Triad, BJRH was not interested in any merger with GHH or in expanding as a regional healthcare system. Mr. Taylor’s comments are really about eliminating competition and patient choice for local hospital based care. BJRH has not expanded outside of Dunn, and its own bylaws require that the trustees come from Aversboro Township. The one location BJRH claimed it would open outside Dunn (in Erwin) is being used as a storage facility. By contrast, GHH has expanded its services to locations outside Erwin in Angier, Benson and Lillington.

Contrary to Mr. Taylor’s remarks, the local medical society, Good Hope officials and independent consultants have NOT said that a single healthcare system, with one acute care hospital located in Dunn, is best for Harnett County. In fact, local medical societies, Good Hope officials and independent consultants have determined that what is best for Harnett County is a centrally located hospital. No consultant is on record as having ever suggested the best location in Harnett County for a single hospital is in Dunn. The Court was not persuaded by BJRH’s argument that there should only be a single Harnett County hospital located in Dunn.

Questions #8, 9 and 10 Should have Read: “Does Mr. Taylor accurately represent BJRH as willing to close BJRH to collaborate with Good Hope on single healthcare system with an inpatient facility located somewhere other than Dunn?”

NO. BJRH’s definition of a regional health care system is dependent on the one acute care hospital in the county being BJRH located in Dunn with BJRH’s trustees making the health care decisions for all of Harnett County. Mr. Taylor says that a merged health care system would be based on what the leadership of that merged system decides. However, at trial, Mr. Taylor testified under oath that BJRH rejected Good Hope’s proposal for a combined board to form the new combined system that would decide the location for inpatient services. BJRH’s trustees even refused GHH’s offer to form an advisory board to consider collaborative opportunities between the two hospitals. Further, under Al Taylor’s leadership, BJRH has stopped all collaboration with GHH. BJRH will no longer share equipment, supplies, or jointly recruit doctors, all of which had been practices between the two hospitals in the past. The record also shows that BJRH’s proposal was for Good Hope to close and move all operations to Dunn where the only inpatient facility in Harnett County would be located. The BJRH vision for medical care in Harnett County has been and remains contrary to the need of the citizens for a centrally located hospital in the growth area of the County with heightened access for all citizens of Harnett County.

The Real Question -- Is Good Hope’s Proposal Good for Harnett County?

YES! According to the people of Harnett County, consultants and independent studies,

GHH’s proposal for a more centrally located replacement hospital, which assumes the on-going existence of BJRH, will bring the best opportunity for excellent medical care in Harnett County, including greater resources, enhanced physician recruitment, and reduced out-migration of our citizens to other counties for health care.

Another advantage for Harnett County is that the GHH-Triad partnership will result in the formation of an independent, nonprofit charitable organization called the Good Hope Community Foundation. The Foundation will exist for charitable and educational purposes as an operating foundation providing health related programs and services directly to the community and by providing funds for the support and development of high-quality community based, not-for-profit activities. The mission of the foundation is to provide financial support to programs and initiatives that improve the health, wellness and quality of life of the people of Harnett County. As initially planned the foundation would have about $8 million and would be the largest such charitable fund in Harnett County and a tremendous asset to the community. Regrettably, costly delays in building a replacement hospital and other expenses incurred due to the opposition of BJRH will result in the reduction of funding and initial value of the Foundation.

BJRH, consider what you are costing the citizens of Harnett County. Stop your opposition to the GHH replacement project!

Press Release - September 3, 2003

HARNETT CITIZENS SHOW OVERWHELMING SUPPORT FOR NEW GOOD HOPE HOSPITAL, COUNTYWIDE SURVEY FINDS

ERWIN – Nearly 85 percent of Harnett County residents support construction of a new Good Hope Hospital, according to survey results conducted by Lone Star Research, a Houston, Texas market research firm.

“There is overwhelming support for building a new Good Hope Hospital in central Harnett County,” said Dr. Larry Freshnock, president of Lone Star Research. “The survey results show that Harnett County residents are significantly dissatisfied with current hospital and physician services and tend to travel to Raleigh, Fayetteville, Sanford, Chapel Hill and Durham for health care.”

The survey found that nearly 44% of Harnett County residents believe there is a critical shortage of hospital services, while 31% perceive a shortage in physicians in both primary and specialty care. The survey showed 21% of Harnett residents don’t have a regular family physician.

The poll was conducted in Harnett County on the evenings of August 13-17, 2003, surveyed 300 residents by telephone and has a 4.9% margin of error. The poll was commissioned by Good Hope Hospital to test community opinions and attitudes about construction of a new hospital facility.

The poll showed that 90% of the county’s residents believe the construction of a new Good Hope Hospital will keep important jobs in the county and will provide a positive economic boost for Harnett County. The respondents believe a new Good Hope Hospital in central Harnett County will provide residents an opportunity to “stay at home” for health care and will enable the hospital to attract new doctors and expand services improving quality, access and affordability.

“This consumer survey validates our position that a new Good Hope Hospital will be a positive boost for Harnett County. By an 84% to 9% margin, Harnett County residents say they want a new hospital in central Harnett County,” said Don Annis, chief executive officer for Good Hope Hospital. “This poll reaffirms our belief that Harnett residents want more options for health care here at home. They want to see us provide good jobs, high quality care, access and affordable health care for our citizens here in Harnett County. Clearly the people of Harnett County have spoken and we hope the State is listening.”

“By building a new hospital and medical park, we can bring in new doctors, offer new and expanded services and keep our residents closer to home. Our new hospital will allow Harnett residents to stay at home rather than driving to Sanford, Raleigh, Fayetteville, Chapel Hill and Durham,” Mr. Annis added. The survey found that 64 percent of the households in Harnett County go to hospitals out of the county for health care services.

The survey found that 73% of Harnett residents believe building a new Good Hope Hospital will allow the hospital to expand services for the uninsured, for those on Medicare, Medicaid and Tri-Care, the military’s health plan. Nearly 87% believe the new hospital will attract new doctors and 62% believe Good Hope’s partnership with Triad Hospitals will be beneficial to the county because it will provide financial stability for the hospital and will add tax dollars to the county’s coffers.

The survey found that 58% of county residents believe opposition to the new hospital is due to politics and community power struggles.

“This survey research just reaffirms our belief that a new Good Hope Hospital will be a beneficial community investment for Harnett County. Our citizens want a new hospital and it is clear by this pole that our residents want the very best health care and hospital facility,” said Earl Jones, chairman of the Good Hope Hospital Board of Directors. “We are aware of over 7000 letters, postcards and email messages have been sent to our legislators in support of the Good Hope project.

August 6, 2002 - Press Release

The board of Good Hope Hospital (GHH) today announced that they have selected Triad Hospitals, Inc. (Triad (NYSE: TRI)) to begin exclusive negotiations on the development of a replacement hospital. This agreement is an expansion of the existing relationship with Triad’s subsidiary, Quorum Health Resources (QHR), which has been providing management services to GHH since 1993.

Within the next 90 days, the parties will complete a due diligence review and finalize a definitive agreement as soon as possible. Construction could begin in approximately six months, contingent upon receiving necessary State approvals. The new hospital could be completed within fourteen months from the beginning of construction. More information will become available once a schedule is finalized.

Triad, through its affiliates, owns and manages hospitals and ambulatory surgery centers in small cities and selected high-growth urban markets. The company has 48 hospitals (including one currently under construction in Las Cruces, NM that is opening this month) and 14 ambulatory surgery centers in 16 states with approximately 8,600 licensed beds. In addition, through its QHR subsidiary, the company provides hospital management, consulting, and advisory services to more than 200 independent community hospitals and health systems in 43 states.

“It was natural that we would consider partnering with Triad because of our longstanding relationship with QHR”, said Earl Jones, GHH board chairperson. “After further investigation of Triad, we found great compatibility between our two organization’s mission and healthcare philosophy. Triad’s rapid growth and success impressed us. Triad will give us access to capital for the replacement facility. We have the opportunity to make GHH the leading provider of quality healthcare in the area with a new state-of-the-art hospital on a new campus.”

This partnership will serve to strengthen, not replace, current regional affiliations GHH has with teaching hospitals, including Duke and UNC. “We are proud of the cardiac services provided by the clinical team from Duke Healthcare”, commented Don Annis, GHH CEO. “We know that a larger, new facility will bring other specialized services to Harnett County. I am particularly excited that Triad’s philosophy fosters a high level of physician participation as well as recognizing the value of employee contributions.”

There has been no decision regarding the location of the new facility. A market study will be commissioned to determine the best location to meet the needs of the community. GHH has a new 51-acre site on Route 421 that will be considered and evaluated during the study.