Broughton decision won't be appealed

Timeline set for construction of new hospital

By Sharon Mcbrayer
Published: June 09, 2009

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Morganton --

The Centers for Medicare & Medicaid Services likely won't try to appeal a legislative law judge's decision that the federal agency should never have pulled its funding from the hospital.
The Centers for Medicare & Medicaid Services pulled funding from Broughton in August 2007 after two deaths at the hospital. The funding was re-instated in July after it went through a shakeup of management, including removing Broughton's director Seth Hunt, and a thorough review process.
The judge made the decision on March 31 that, in essence, vindicated the hospital and its administrators and staff. The ruling also meant the state and hospital can file for reimbursements of lost funding from CMS.
The Centers for Medicare & Medicaid Services did have the right to appeal the decision.
Mark Van Sciver, spokesman for the state, said on Tuesday that CMS has made it known verbally that it won't contest the judge's ruling.
"At this point, we're waiting for an official letter," Van Sciver said.
The next step in the process for Broughton and the state is to figure out how much the reimbursement from CMS will be, Van Sciver said. They should know the amount in a couple of weeks, he said.
Something state and hospital officials won't have to figure out is how to pay for a replacement hospital on the campus of Broughton.
Van Sciver said the new hospital will be funded through certificates of participation that legislators approved in 2006. Certificates of participation are funded through bonds that are sold on an as-needed basis to pay for construction, he said.
Jimmy C. Draughn and Robert L. Patton high schools were funded with certificates of participation.
The design for the new hospital is under way, Van Sciver said. However, a new hospital at the Cherry Hospital campus in Goldsboro will be started first before work starts on Broughton, he said.
Contracts for construction for Cherry Hospital will go to bid in late January or early February, Van Sciver said.
Contracts for Broughton should go to bid in spring 2011, he said. Each project will take about 27 months to complete, he said.