MedWest Health System has received all the necessary approvals to secure a $10 million line of credit from Carolinas HealthCare System, CEO Mike Poore said Monday.Read the full article
The final step was approval from the two boards that affiliated to form MedWest – Haywood Regional Medical Center and WestCare Health System – and both boards gave the go-ahead last week.
Haywood officials approved the deal Jan 10, and WestCare board members gave their OK on Jan. 11.
WestCare Chairman Bunny Johns said Monday that the line of credit is needed to solve a short-term cash flow issue.
“We’re in an economic downturn,” she said. “The hospitals feel the downturn like everyone else.”
That cash flow problem is the result of federally mandated upgrades to MedWest’s health records system, Poore said. All MedWest hospitals and physicians’ offices are making the switch to completely electronic records, he said.
... “We’ll get the money back over the next several years from the federal government, but we have to make the investment,” [said Poore.] ...
The Haywood and WestCare boards affiliated in January 2010 to form MedWest, which is managed by Carolinas. Poore is employed by Carolinas but is appointed by the MedWest board, he said. MedWest Harris administrator Steve Heatherly works for Poore and is employed by WestCare, Poore said.