Moving Franklin Regional Hospital – A for-profit hospital chain meets the public mission of UNC Hospitals.

Just up the road yet another dispute over hospital relocation is playing out.  Local interest and debate has been intense regarding Franklin Regional Medical Center’s proposal to relocate from the center of Franklin County in Louisburg to be nearer the lucrative Wake County market in Youngsville.  Adding spice to the mix is that Franklin Regional is one of the very, very few hospitals in North Carolina that is a for-profit entity – it’s a part of the gigantic Health Management Associates (HMA) hospital corporation that owns hospitals all over the country.

Franklin County has an overwhelmingly rural and poorer northern half and a wealthier and much faster growing southern half – the half nearest Wake County.  Residents in the northern half worry about being abandoned by their hospital while the growing southern half’s needs (and money) beckon HMA stockholders.

Turned down by the state on their first proposal to move all on its own, Franklin Regional announced this month that its newest attempt will be a partnership with nonprofit Rex Hospital in Wake County.  An attempt to meet rural health concerns will be met by developing two new health clinics as part of the system in Franklin’s northern area.

Rex, a nonprofit hospital, is part of NC flagship public UNC Hospitals.  The proposed partnership with for-profit Franklin Regional raises fascinating questions about UNC’s public health care responsibilities.  Can UNC’s mission to serve lower-income patients square with the demands of HMA stockholders for the maximum return and highest possible profits from their Franklin Regional business?  Should (and could) Franklin Regional convert to a non-profit hospital to avoid this conflict?  Will state taxpayers indirectly finance a deal in some way through public UNC hospitals that benefits a for-profit company?

Generally, a partnership with another hospital to create a regional health system is a much better deal for patients than having for-profit and non-profit hospitals square off in zero-sum competition.  I even suggested consideration of such a partnership earlier in the year when I testified to the Franklin County Commissioners regarding the original relocation plan.  With two new urgent care centers in rural areas and a regional partnership this plan looks to be a much better deal than the original.  Careful scrutiny is called for however when the largest public hospital system in the state starts getting into the for-profit hospital business.  Putting profits above patients is a major reason for the out-of-control expense of our current health system.