Randolph Health gets an Interim CEO and Attorney General approves loan
It’s been a long and arduous process to get Randolph Health acquired by American Healthcare Systems, LLC. With these new milestones, they’re close to the finishing line and are likely to announce the finalized deal in a week, according to Randolph Health representative April Thorton.
At a bankruptcy hearing on last week, Randolph Health moved a few steps closer to finalizing its sale to American Healthcare Systems, LLC, which will happen later this summer, according to Randolph Health.
Here’s what happened:
An Interim CEO
Michael S. Miller became Interim CEO of Randolph Health, effective June 5th, until Tim Ford takes over with the sale to American Healthcare Systems. He follows the departure of Angela Orth, who assumed the CEO position for Randolph Health in 2018 and helped it file for bankruptcy and secure a buyer.
Miller has an operations and finance background and has worked in healthcare settings for the past 30 years, including hospitals, long-term acute care hospitals, skilled nursing, rehabilitative units, psychiatric units, ambulatory care clinics and durable medical care.
As a former hospital CEO, he often steps in as an interim CEO to help organizations turn around management for operational, and state/federal regulatory compliance, according to Miller.
Miller has worked on projects with Randolph Health for the past two years and has been working with Angie Orth for the past month to transition into the role.
“I know your values and pledge to adhere to them and I will follow in Angie’s footsteps providing transparent, honest communication moving forward,” says Miller in a press release.
Attorney General gives verbal approval of $12 million loan
The sale to American Healthcare Systems, LLC, has a key contingency: the approval of a loan from the Rural Health Care Stabilization Fund.
Last month, the Local Government Commission under the NC Treasurer approved the Rural Healthcare Stabilization Program application from Randolph County for a loan of $12 million. This funding will be made available to American Healthcare Systems, LLC, over several years and after the sale is complete.
The next step was approval from the North Carolina Attorney General Josh Stein. At a meeting on Friday, he gave verbal approval for the loan. According to Randolph Health representative April Thorton, the transaction will be finalized when they receive written approval and announce a date for the transition. She predicts that it will be processed in about a week.
Purchase price goes down to $10 million as loan gets approval
The original Asset Purchase Agreement between Randolph Health and American Healthcare Systems, LLC, was reliant on a $20 million loan from the Rural Health Care Stabilization program. With its new allocation of only $12 million, American Healthcare Systems renegotiated the Asset Purchase Agreement. The price was originally around $18 million and has since been lowered to $10.2 million.
The acquisition has been years and months in the making, ever since Randolph Health hit serious financial health issues given changes in the healthcare industry, such as increase cost of healthcare and new dynamics with insurance companies. Rural healthcare centers are struggling all over the nation, and the sale to a larger hospital system like American Healthcare Systems, LLC, is critical to Randolph Health’s survival.
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Michelle Shen is an Economic and Data Reporter for The Courier Tribune. Feel free to reach out to her with story tips on Twitter (michelle_shen10), Instagram (pretty_photos_by_michelle OR michelle_shen10), or email (email@example.com).