Michelle Crouch recently reported that three lawmakers in North Carolina are interested in revisiting a state law that grants special privileges to hospital authorities like Atrium Health. The legislators argue that the law, written in 1943, was intended for struggling county-owned hospitals, not for billion-dollar hospital systems like Atrium. Representative Donny Lambeth, Senator Jim Burgin, and Representative Larry Potts expressed concerns about the benefits Atrium enjoys as a hospital authority, including eminent domain powers and tax breaks.
A recent article highlighted Atrium’s growth as a multi-state hospital chain with billions in revenue. The lawmakers are calling for a review of the hospital authority law to determine if Atrium’s advantage needs to be addressed. They also criticized Atrium for not operating with the same transparency as other government entities. Atrium defended its practices, stating that it complies with the law and provides community benefits.
The lawmakers believe that Atrium should follow open meetings laws like other government boards and are considering changes to level the playing field between public and private hospitals. Barak Richman, a Duke University law professor, supports updating the hospital authority statute, citing Atrium’s misuse of the law. However, he is concerned that changes may benefit Atrium.
Potential changes to the law could include eliminating the hospital authority act or imposing stricter regulations on Atrium’s operations. The legislators are aware of the complexities of hospital laws and are open to reform on various issues. Critics argue that recent legislative actions have favored hospital systems, and they hope any changes will address fairness and accountability in the healthcare industry.
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