NEW HANOVER COUNTY, NC – An additional $75 million from the sale of New Hanover Regional Medical Center (NHRMC) has been distributed equally between the New Hanover Community Endowment and the NHRMC Foundation, as outlined in the asset purchase agreement.
When New Hanover County and NHRMC partnered with Novant Health, the parties established the necessary escrows to ensure the full wind-down process of the hospital was managed well and funded appropriately.
As part of the agreement, $100 million was set aside in an escrow account to address any trailing liabilities associated with closing operations of NHRMC. The agreement outlined that on the second anniversary of the transaction closing, $75 million of the escrow should be released minus any liabilities that had been paid from the escrow.
Based on the wind-down process and liabilities after two years, $75 million has now been distributed, with $37.5 going to the New Hanover Community Endowment and $37.5 million to the NHRMC Foundation.
“The Community Endowment was created by the New Hanover County Board of Commissioners, and this additional investment places its total assets from the sale of the hospital at more than $1.3 billion and that is simply incredible,” said New Hanover County Board of Commissioners Chair Bill Rivenbark. “The endowment was created by New Hanover County to help change lives, ensure access and opportunity for every single person, and transform our community; and this additional money will help them take their mission even further. The work of the NHRMC Foundation will also benefit greatly, with this investment allowing them to increase their important support for hospital employees and patients now and in the years to come.”
The remaining funds in the escrow will be distributed equally to these same two entities on the fourth anniversary of the transaction’s closing, per the agreement.