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Hospital Legal Action
This page is a timeline of the hospital legal issues
Please scroll down to view the timeline & court documents

5/9/15 - News Release - Hospital Update
Yadkin County received the attached e-mail today from Chief Legal Officer of the current hospital provider, HMC/CAH Acquisition Company 10, LLC d/b/a Yadkin Valley Community Hospital (HMC/CAH) in response to the offer the Yadkin County Board of Commissioners made to them on May 4, 2015.  HMC/CAH had expressed to the County that time was of the essence and that they were willing to reopen negotiations with the County based upon a long term lease of the hospital premises coupled with their offering to agree to the same terms as had been expressed in Hugh Chatham Memorial Hospital's (HCMH) response to the County's request for proposals.
Link to Email

5/23/15 - Important Information Concerning Yadkin County Community Hospital Closure
This article contains links to court filed documents requiring the hospital to remain open.

Link to Document Page

5/28/15 - Hospital Update News Release
For Immediate Release
Yadkin County Manager's Office
May 28, 2015
(336) 679-4200

Yadkin County representatives and Hugh Chatham Memorial Hospital representatives met today with the leadership of the North Carolina Department of Health and Human Services in Raleigh to discuss the unauthorized closure of Yadkin Valley Community Hospital. Director Drexdal Pratt and his staff informed the group that they understood all the facts surrounding the sudden unauthorized closure of the hospital, and he informed Yadkin County that DHHS would do everything legally possible to facilitate health care delivery in Yadkin County. This transition will take some time, and Yadkin County asks that its citizens be understanding of this. The
hearing in Wake County on Monday, June 1, is the next step in the process.

5/29/15 - CAH files to move case to Federal Court
May 29 2015
(336) 679-4200

Yadkin County has just learned that the operator of the Yadkin Valley Community Hospital has filed a motion and transferred the lawsuit the County filed against HMC/CAH Acquisition Company 10, LLC d/b/a Yadkin Valley Community Hospital (CAH) to federal court, which will mean there will be no opportunity for a quick resolution by the Court to the wrongful closure of the hospital.

County Attorney Edward L. Powell said, “This is nothing but a stalling and delay tactic by CAH meant to harm the citizens of Yadkin County.  These people have stooped to a new low.  Yadkin County is now going to take all measures necessary to get CAH physically and legally out of our hospital at the earliest possible moment and to work diligently to get a much better health care alternative established for our citizens.  If there were ever any doubt about the motives of the hospital operator, this action clearly identifies the kind of folks we are dealing with.”

These are new hospital court documents relating to the transfer of the case to Federal Court.

Link to Documents

6/2/15 - Links to the "Motion to Show Cause" Court Documents
These are links to the "Motion To Show Cause" court documents.

Motion To Show Cause

Memo of Law

Exhibit 1A

Exhibit 1B

Exhibit 1C

Exhibit 2

Exhibit 6

6/4/15 - Federal Court Filing

6/16/15 - HMC Response to County Complaint

6/19/2015 - Order by the United States District Court

7/15/15 -Judge Boyle ordered CAH 10 to vacate the Hospital by 5:00 p.m. today

For Immediate Release

July 15, 2015

(336) 679-4200

Earlier today, the federal court heard Yadkin County's motion filed on July 6, 2015.  Judge Boyle ordered CAH 10 to vacate the Hospital by 5:00 p.m. today and turn over the keys to the County.  The court further ordered that CAH 10 has five days to submit a schedule to the court of challenged hospital property, which CAH 10 wishes to remove. The court further indicated that CAH 10 has 20 days to respond to the county's notice regarding its damages and fees.

7/20/15 - CAH 10 filed an Answer and Motion to dismiss Yadkin County’s lawsuit
For Immediate Release
July 20, 2015
(336) 679-4200

Earlier today, CAH 10 Acquistion Co. 10(CAH 10) and Rural Community Hospitals of America
(RCHA) filed an Answer and Motion to dismiss Yadkin County’s lawsuit in the federal court.
County Commission Chairman Kevin Austin said, “The statements made by them to the Court
today represent nothing but a continuation of the same old misleading story they have been
telling for the last many months. We plan to continue to work hard for the citizens of Yadkin
County to reestablish health care in our County in spite of their obstructionist tactics”.

8/5/15 - Hospital News Release
August 5, 2015
(336) 679-4200

In response to a recent court filing by the operator of the Yadkin Valley Community
Hospital, Yadkin County Board of Commissioners Chairman Kevin Austin said:
“It is a continuing tragedy for the citizens of Yadkin County that the former hospital
operator sees fit to continue to make false statements about their violations of the law
and medical ethics in their unlawful closure of the Yadkin Valley Community Hospital.
CAH Acquisition Company 10, LLC d/b/a Yadkin Valley Community Hospital (CAH)
has now claimed in a filing in Federal Court that they owe little or no damages to the
County for their wrongful acts although the Judge found them in contempt of Court for
their failure to obey a Court Order and found their testimony to be absolutely untrue.
The Yadkin County Board of Commissioners will continue to fight in Court to recover
our damages and will continue to work hard for the citizens of the County to have the
medical care they expect and deserve.”

Click Here For: HMC Response to Damages

8/18/15 - News Release
August 18, 2015
(336) 679-4200

The Yadkin County Board of Commissioners has taken another major step toward
restoring healthcare to the citizens of Yadkin County.
County Commissioner Chairman Kevin Austin said, “We have entered into two
contracts with healthcare consulting firms that will provide the County with detailed
analyses on the financial models and building needs of the hospital facility. One of the
contracts is with Spectrum Health Partners of Franklin, Tennessee who will prepare a
series of financial models to provide the County with numerous options relative to the
future of our hospital and the healthcare needs of our citizens. The other contract is
with Criterion Healthcare of Concord, North Carolina who will prepare a physical
analysis of the current hospital facility and conduct a series of public forums in the
County to educate the citizens on the steps the County is taking to insure the
sustainability of delivery of healthcare to the community. We believe these two studies
will enable our Board of Commissioners to make sound decisions on the best and most
efficient healthcare needs for our citizens for decades to come.”

Criterion Healthcare

Spectrum Health Partners

11/27/2015 - For Immediate Release

For Immediate Release

November 27, 2015

Contact (336) 406-9075

The former Yadkin Valley Community Hospital operator and its associated corporate entities today have filed an answer and counterclaim to the lawsuit brought against them by Yadkin County in May of this year.  The federal court in the Eastern District of North Carolina found these Defendants to be in contempt of Court in a June 16, 2015 hearing and further found that their live testimony in Court that day was not credible.  Much of these new court filings by these same Defendants continue to spread the vengeful and untrue venom they have spread since their wrongful closure of the hospital.  The statements in these latest court filings are beyond the realm of comprehension, and they have absolutely no basis in fact. The fact that they continue to argue in these documents that they were evicted from the hospital is absolute proof that these are desperate people who will say and do anything in hope that someone will believe as least some of what they say. The good folks of Yadkin County know the truth about these people, and everyone who have kept up with this sad saga of violations of medical ethics will see this new information from Kansas City for what it is – medical provider people who know they have been found out for what they really are and are ready to blame everyone but themselves.

County Manager Lisa Hughes said, “The County did not act deceitfully nor unlawfully at any time.  At no time has anyone acted inappropriately, and there has been no conspiracy of any nature whatsoever by anyone.  Chairman Austin has been forthright in all his actions concerning this and all other County matters, and we look forward to the opportunity to spell out the true facts in this case.”

Supporting Documents:

94 Def HMC and CAH Consolidated's Answer 2015-1125

Answer-Claims CAH 10

RCHA Answer-Claims

1/20/2016 - Hospital News Release
For Immediate Release
County of Yadkin
January 20, 2016
(336) 679-4200

The Yadkin County Board of Commissioners approved sending a letter to the NC Department of Health and Human Services at its regular meeting last night requesting that the Yadkin County Hospital be deemed a Legacy Medical Care Facility in accordance with North Carolina General Statute 131E-176 (14f).

Chairman Kevin Austin stated, “This is another in a series of positive steps the County has taken to re-open the hospital.  The State has been gracious to work with us and hold the license until we can find another operator for the hospital, and this new legislation gives the County additional assistance in finding a new medical provider for our County.  Our staff has been very diligent in the past few months in working with the medical community throughout North Carolina on the best and most efficient ways to restore medical care for our citizens, and we are very hopeful that we may be able to make  some  decisions  in  the  not  too  distant  future  on  the  best  solutions  that  are available. While the statute and designation of a Legacy Medical Care Facility allows 36 months to re-open the hospital, we expect to have an excellent medical service provider in the facility in far less time than that.”

The Legislation Chairman Austin references is a change that came out of the North  Carolina  
General  Assembly  late  in  the  session  last  year  that  created  a designation of Legacy 
Medical Care Facility for hospitals that operated within the last 24 months, but had not been operational within the last 6 months.   The revised statute exempts Legacy Medical Care Facilities from certificate of need review and provides
them 36 months to re-open the facility.

Furthermore, the statute requires a letter be submitted to the State requesting the designation, 
which is what Yadkin County is doing now.   Yadkin County received possession of the hospital facility in mid-July, 2015 as a result of a Court Order issued by Judge Terrence Boyle of the United States District Court in the Eastern District of North Carolina.

1\21\16 - CAH 10 Ordered To Pay County Damages & Attorney fees
Click Here to see the court order

For Immediate Release
January 21, 2016
(336) 679-4200
U. S. District Court Judge Terrence Boyle in the Eastern District of North Carolina having found the former Yadkin Valley Community Hospital operator to be in contempt of Court in a June 16, 2015 hearing has entered an Order on January 19, 2016 against CAH Acquisition Company 10, LLC; HMC/CAH Consolidated, Inc.; and Rural Community Hospitals of America, LLC for them to pay jointly and/or severally the sum of $36,079.96 in costs and $112,011.70 in attorneys fees to Yadkin County as a compensatory penalty for the civil contempt of these companies relating to their knowing violation of a Temporary Restraining Order entered by the Wake County Superior Court on May 22, 2015. A copy of the Court’s Order is attached hereto.

Yadkin County Board of Commissioners Chairman Kevin Austin said, “We are very pleased with the Court’s decision awarding these damages to the County. This means that the citizens of the County will not have to bear the costs of a significant portion of this litigation against the illegal actions of the former hospital operator. We look forward to seeing all of these problems far behind us in the rear view mirror as the County moves toward a much improved healthcare system for our people.”

4/4/2016 - Settlement Reached in Hospital Case

Click Here for the settlement documentation.

Note: This is a large file and may take some time to load.