Greenville legislators call for sale of Greenville Health System

Eight members of the Greenville County legislative delegation have introduced legislation that calls for the sale of Greenville Hospital System and dispersing the proceeds among various governmental, educational and other groups.

In an op-ed emailed to The Greenville News, the group said that public trust was shaken when GHS “unilaterally restructured and leased our publicly-owned, multibillion dollar asset without the legislative delegation’s input or consent as the law requires.”

It was signed by state Sens. Tom Corbin and William Timmons, and by Reps. Mike Burns, Bill Chumley, Dwight Loftis, Garry Smith, Leola Robinson-Simpson and Ashley Tranthum.

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Greenville Health System issued a short statement about the measure.

“Since this bill was just filed," spokeswoman Sandy Dees said, "we need time to review it and to get a better understanding of its intent and the potential ramifications.”

GHS changed from a public nonprofit to private, nonprofit multi-regional health system in 2015. But the plan was met with opposition from the delegation members who said it would end government oversight of public assets.

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GHS received about $82 million in county tax funds during the 1960s and 1970s to build parts of Greenville Memorial, Hillcrest Memorial, North Greenville Hospital and Allen Bennett Memorial.

In the op-ed, the legislators said that GHS had worked with the delegation since 1947 on the best way forward “so that this public asset operated legally,” but hadn’t done so when restructuring. Matters were made worse when GHS announced its partnership with Palmetto Health, they said.

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“In the last year, the GHS executives have attempted to justify their actions by claiming that the best way of providing high quality patient healthcare in the future is to look to consolidation and privatization,” the legislators wrote. “The legislative delegation is in favor of this path if it is done the right way. To date, the GHS executives have yet to meaningfully work with the delegation on a legal path forward to make this possible. This is unacceptable.

“Since GHS will not come to the table, even while GHS claims that patient healthcare is hanging in the balance, the best solution to the problem is to legally allow the system to move forward as a private entity,” they continued.

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“Simply put, we should sell GHS. We should allow the private market to provide innovative and high-quality care for our community and return the profit from the sale of this multibillion dollar state asset back to the state and Greenville County.”

The bill, which was filed in the state House Thursday, calls for the GHS Board’s duties to be amended so that they are solely tasked with facilitating a sale and relieving current executive management of their responsibilities while an interim president steps in.

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It also calls for a competitive bidding process, with proceeds of the sale ranging from $2 billion to $3 billion, from which bondholders would be paid.

The remainder would then be divided into quarters and distributed to the state, the University of South Carolina School of Medicine Greenville, Greenville County Council and a nonprofit to distribute the funds in the community.

A total of $40 million would go to replace aging school buses and $30 million would be used for workforce development on the technical college level . And $2 million each will go to eligible charter schools in Greenville County with Greenville County schools getting five $1 million increments to support services to low-income students, according to the bill.

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Hundreds of millions would go to the medical school to create an endowment to educate the medical workforce of the Upstate, 25 percent would be devoted to socioeconomically disadvantaged and minority communities, and $5 million would go to the Levi S. Kirkland, Sr., M.D. Scholarship Fund.

Of the money distributed to the Greenville County Council, 60 percent would be used to offset property taxes of residences currently taxed at 4 percent over a period of five years. The Council also would be directed to distribute $50 million for affordable housing projects and maintenance in Greenville County and the City of Greenville.

Up to $5 million dollars would be used to replace the Hampton Avenue bridge, $10 million would fund development of minority small businesses through the Greenville Area Development Corporation, and another $10 million would support small agricultural businesses. Funding also would be used to address community needs and facilitate community health.

The nonprofit would use its portion to promote health and wellness in the community.

“Investing hundreds of millions of dollars for the good of Greenville County will create a legacy that will benefit our home for generations,” the legislators wrote.

Timmons, a Greenville Republican who is running for Congress, said the majority of the delegation supports the proposal.

“We’re having these same conversations about Santee Cooper and the role of government whether it’s appropriate to own things like a hospital or a utility,” he said. “I think people are just coming to the conclusion that it is not the role.”

He said if this was considered by the House as a local bill, it would have a much better chance of moving quickly through the Legislature this year. The fact that it was assigned to the House Judiciary Committee means it will not move as quickly, he said.

“It will be harder to get it done but we’ve got to put an end to this controversy,” he said. “The majority of the delegation thinks this is the best way.”

He said he has not discussed the idea, which the delegation has been talking about for about two months, with any County Council members.

“But I would generally think they would be in favor of lowering property taxes by around $300 million over the next five years,” he said.

Timmons said the proposal was from “everyone,” not a single lawmaker. He said it has nothing to do with his congressional campaign.

“My campaign consultants think this is the worst idea ever,” he joked.

Rep. Dan Hamilton, a Greenville Republican also looking at the Fourth Congressional District seat, said he had not read the entire bill.

“On it’s face, it does seem worrisome that we would sell an asset and have an unknown buyer and cede control of our health care choices to who knows who at this point,” he said. “I’m for local control of health care. That would be my first priority.”

Rep. Jason Elliott, another Greenville Republican, said he hopes the bill will spark a needed conversation about the future of GHS.

“The proposed legislation in my opinion will serve to start a discussion in Greenville as to what the public thinks about the governance of the hospital system and whether the hospital should be a public or private entity,” he said.

“My general thought is that the Greenville Hospital System doesn’t need to be under the thumb of the Greenville County legislative delegation and the hospital needs to follow the law that governs GHS,” he added. “I don’t believe the delegation needs to tell the hospital system how it should operate. But there is a question as to whether the hospital system overstepped its authority under the law.

"My hope is the Greenville County legislative delegation and the Greenville Hospital System can come to an understanding and agreement that works best for the people of Greenville County and all the people served by GHS.”

Elliott said there should be a discussion by doctors, health care providers and the general public as to the best way for the hospital system to be organized moving forward.

The measure allows that if within six months of the act's passage the SC Supreme Court determines that the restructuring was legal, then the provisions of the new bill will be void.

The Senate version will be filed Tuesday, Timmons said.