Randolph Health and Cone Health Sign Non-Binding Letter of Intent
The move is the next step toward a potential affiliation between the organizations.
GREENSBORO, N.C. May 24, 2017 – The chairs of the governing boards of Randolph Health and Cone Health have signed a non-binding letter of intent. The agreement does not commit either organization to a future affiliation. However, it is the next step in a due diligence process that began in January.
The letter comes after extended discussions over the framework for a potential integration. The non-binding letter of intent spells out several initial points:
- Cone Health would commit to a more than $100 million investment, including upgrading facilities and technology at Randolph Health.
- The core health care services currently provided at Randolph Health will continue to be delivered in Randolph County.
- New services will be developed in Randolph County.
- Two seats on the Cone Health Board of Trustees would be designated for representatives of the Randolph Health community.
- The Randolph Health Community Foundation would continue as an independent community foundation.
- Cone Health will work with the Randolph Health team to develop a capital and master site plan within the first six months of any integration.
“Today’s announcement is the next step in a process,” says Steve Eblin, CEO, Randolph Health. “Many details remain before a final decision on an affiliation is made. But we are encouraged about the future we could build together and the impact we can have on the health of our community.”
Randolph Health and Cone Health have a long and successful relationship that has improved health care through partnerships such as the Randolph Health Cancer Center and Randolph Health Stay Well Senior Care. In 2016, the two organizations entered into a successful management services agreement. That agreement would be terminated should the organizations integrate.
“We believe it is important that people in Randolph County have high-quality, local options for their health care. And, opportunities may exist for Cone Health to more effectively serve patients in need of services not offered locally,” says Terry Akin, CEO, Cone Health. “The next several months will be about seeing how the pieces that each organization brings to the table could fit together to make that happen.”
SOURCE: Cone Health