Healthcare Foundation Of Wilson Board Votes To Exercises Put Option On Wilson Medical Center
Media Contact:
Paula Benson
Executive Director
Healthcare Foundation of Wilson
252.281.2107
pbenson@hfwilson.org
WILSON, N.C. (Aug. 12, 2024) – In a specially called meeting, the Healthcare Foundation of Wilson board of directors voted Monday night to exercise its put option to sell its ownership in the Wilson Medical Center.
When Wilson Medical Center was sold to Duke LifePoint Healthcare in 2014, the Healthcare Foundation of Wilson was established from the proceeds of the sale. As part of that transaction, the Foundation retained a 20 percent interest in the hospital with the option to sell to Duke LifePoint.
“For the past 10 years, we’ve had a minority interest in the Wilson Medical Center,” said Kurt Schmidt, board chair of the Healthcare Foundation of Wilson. “Exercising our option to sell our interest in the hospital gives the Foundation greater flexibility to address Wilson’s greatest health needs.”
The next step in the process is for the Foundation and Duke LifePoint to have an independent valuation of the hospital completed, which could take several months. The proceeds from the sale will go to the Foundation and be earmarked to improve the health and wellness of the Greater Wilson community.
“We have been committed to supporting our community since the day the Foundation was formed,” said Paula Benson, executive director of the Foundation. “While we will continue to offer grants in the future, exercising this option gives us additional flexibility in identifying opportunities to improve healthcare in Wilson that align with the Foundation’s mission and focus areas.”
While future projects and partnerships have not yet been identified, the Foundation’s decision to earmark the funds from the proceeds of the sale of the minority interest allows the Foundation to strengthen its impact by focusing on the community’s greatest health concerns. This strategic realignment reflects the Foundation’s commitment to adapting and evolving in response to the community’s changing health landscape.
About the Healthcare Foundation of Wilson
The Healthcare Foundation of Wilson is a public foundation that was established in 2014 when Duke LifePoint Healthcare purchased Wilson Medical Center. The assets received, as well as prior hospital reserves, provide the funding for the responsive and strategic grants awarded and many of the physical improvements to the hospital. The Foundation’s mission is to invest in collaborative efforts that influence and measurably improve the health and wellness of the Greater Wilson community. Since the first grants were issued in 2016, over $56.7 million has been expended. The Foundation remains committed to creating a healthier Wilson community and looks forward to more collaborative partnerships in the future.
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Frequently Asked Questions About The Healthcare Foundation Of Wilson Put Option
When was the Healthcare Foundation of Wilson created?
The Healthcare Foundation of Wilson was established in 2014 as part of the agreement when Wilson Medical Center was sold to Duke LifePoint Healthcare. The terms of that agreement gave the Foundation a 20% minority ownership in the hospital and Duke LifePoint 80% majority.
Why is the Healthcare Foundation of Wilson divesting from the hospital?
This wasn’t a decision we made lightly, but it has been an option we could have exercised at any point over the last 10 years.
The board has discussed this topic many times over the years, and the timing was right for us to exercise the put option. The board agreed and voted to exercise our option to divest our interest in the hospital. This will help us gain operational flexibility, better serve our community, and continue our mission of investing in efforts that improve the health and wellness of the Greater Wilson community.
Why did the Healthcare Foundation of Wilson decide to divest now?
The board of directors for the Healthcare Foundation of Wilson have been considering ways to increase their support and positively impact the health and wellness of the Greater Wilson community. After weighing the options, the Foundation decided to exercise the put option.
What happens now that the Healthcare Foundation of Wilson has exercised the put option?
The Healthcare Foundation of Wilson will adhere to the process outlined in an agreement that was part of the original transaction. As part of that process, the Foundation has notified Duke LifePoint that they are exercising the put option. The next step is for an independent valuation of the hospital, which could take several months.
What happens to the hospital now that the Healthcare Foundation of Wilson has exercised the put option?
We don’t see this as having an impact on the hospital. Duke LifePoint has had majority ownership and control for the past 10 years, and this change simply takes them from 80% to 100%, meaning they will have sole ownership of the hospital.
Who decides how much money the Healthcare Foundation of Wilson gets from the put?
An independent valuation of the hospital will be completed over the next several months.
How much money does the Healthcare Foundation of Wilson expect to make from exercising the put option?
We can’t answer that question right now. We will rely on an independent valuation to determine the value of the hospital, and our interest will be 20% of that amount.
What is the Healthcare Foundation of Wilson doing with the money from the sale?
At this time, it is premature to speculate on the proceeds of the sale and how they will be distributed. The Healthcare Foundation of Wilson will earmark the funds for use in improving the quality of and access to healthcare in Wilson by focusing on the community’s greatest health concerns: access to health care, active and healthy living, substance misuse and mental health.
What is the Foundation’s mission?
The Foundation’s mission is to invest in collaborative efforts that influence and measurably improve the health and wellness of the Greater Wilson community.
