23 Aug WHAT DOES THE ATTORNEY GENERAL LOOK FOR IN THE AGREEMENT? ARE THERE OTHER REGULATORY STEPS?
For any transaction, the attorney general (and his or her counterparts at the federal level) will review the effect the transaction might have on market competition. In this instance, since HCA is new to North Carolina and there is no market consolidation (just a change in ownership of Mission Health), this should not be an issue.
Second, for any transaction that involves the sale of a non-profit entity like Mission Health, which has benefitted from tax exemption and public support, the attorney general will want to ensure that HCA is paying a fair price for the entity. If, for illustration purposes only, Mission Health was worth $100, and HCA was paying only $10, then the public would be shortchanged by $90. The attorney general’s job is to prevent that from happening. Mission Health is fortunate in that it has been advised by extremely well-qualified financial advisors with extensive experience in negotiating transactions of this type and knowledge of the prices paid in similar transactions. Once the relevant data is shared with the attorney general as part of his review, we’re confident he will be satisfied that the public is being adequately compensated for the sale.
Third, the attorney general will want to ensure that any proceeds resulting from the sale continue to benefit the public. One typical manner to accomplish this is for the sales proceeds to be transferred to a charitable organization (such as a private foundation) that will continue to provide benefits to the public. And, the closer the mission of the resulting charitable organization is to the mission of Mission Health, the more likely it is that the very same public that has supported and been supported by Mission Health for so many years will benefit from the activities of the new organization.
In the case of Mission, Dogwood Health Trust, the successor foundation, will have an almost identical mission to that of Mission Health. Its focus will be: to dramatically improve the health and well-being of all people and communities in Western North Carolina