CLYDE — As the situation for Haywood Regional Medical Center continues to worsen, the hospital’s board is starting to seriously consider the possibility of selling the facility.
Last week, the board appointed a committee to look into options for a possible merger, buyout or other change in operations.

The hospital’s woes intensified last month after it lost its Medicare and Medicaid funding in the wake of an inspection that found potentially dangerous problems with how staff members administered medication. That funding accounted for 68 percent of the hotpital’s total revenue.

Since then, three private insurance companies have announced they will no longer pay for services there.

Meanwhile, the hospital has taken steps to correct the problems that led to the loss of funding. HMRC officials say they hope to meet the requirements to have funding returned by the end of this month, but it will still have to endure an undefined waiting period. That process could take at least until the end of April.

While hospital officials said they need to look at all options right now, it is unlikely that a merger would take place before the funding is restored.

Under state law, any proceeds from the sale of the hospital would be returned to Haywood County, which donated the hospital to the nonprofit that currently operates it.

Consultants from the Compass Group, which was brought on to help the hospital regain its certification, have said that it would be premature to sell the hospital now.

Nonetheless, the hospital may be forced to do so, if it is unable to stay in business until the funding is restored.

A sale would be further complicated by pending litigation against the hospital. A doctor and a nurse both have sued the hospital’s board for firing them after they raised concerns about dangerous errors.

In the case of a sale or merger, HMRC’s insurance company would cover up to $3 million per year in case of a court settlement, but the new owners would be responsible for any punitive damages.
Several options exist for new ownership of the hospital. Haywood Regional could merge with

another hospital or hospital system, which would allow it to retain some power, or it could be bought outright.

The hospital could also be sold to the doctors, a practice that has been growing throughout the country in recent years.

Physicians at HRMC have said they want the hospital to consider all options, but have not expressed a preference one way or another yet.

If the hospital is bought, experts say it likely will be purchased by another regional hospital system, rather than a for-profit national chain.