UNC Health Care to buy Chatham Hospital

No layoffs foreseen in $11.3 million plan

CHAPEL HILL -- Representatives of the UNC Health Care System and Chatham Hospital have signed a letter of intent for UNC Health Care to buy the 25-bed hospital in Siler City for $11.3 million.

UNC Health Care has worked closely with Chatham Hospital for 10 years and has managed it since 2006, Laura Clapp, chairwoman of the hospital's board of trustees, said in a news release.

Under the terms of the letter of intent, UNC Health Care would acquire 100 percent control of Chatham Hospital and its assets by becoming the hospital's sole corporate member. Chatham Hospital would remain a separate, private, not-for-profit hospital. All current liabilities and long-term debt of Chatham Hospital will remain in place.

In addition, UNC Health Care will:

* Assume control of Chatham Hospital's $34.7 million in liabilities.

* Transfer to Chatham Hospital $2 million.

* Commit $9.3 million to develop health-care services in Chatham County over the next seven years. Chatham Hospital's priorities include developing more medical office space and expanding radiology services.

The Chatham Hospital board will continue to be responsible for day-to-day operations. UNC Health Care will continue to provide management support.

Carol Straight, the hospital's chief executive officer since 2006, will remain as CEO. There are no plans for layoffs.

The announcement comes as the new hospital building is nearing completion in the Central Carolina Business Campus. Of the 25 beds, 21 are dedicated for general medical/surgical care, and four are dedicated to intensive care services.