UNC system, Vidant Health settle spat over who oversees ECU hospital

The University of North Carolina system and Vidant Health announced Wednesday that they have reached an agreement to resolve a lawsuit over the affiliation between the Brody School of Medicine at East Carolina University and Vidant's flagship hospital in Greenville.

Posted 3:49 p.m. Oct 9, 2019 — Updated 3:49 p.m. Oct 9, 2019

Matthew Burns

, WRAL.com senior producer/politics editor

RALEIGH, N.C. — The University of North Carolina system and Vidant Health announced Wednesday that they have reached an agreement to resolve a lawsuit over the affiliation between the Brody School of Medicine at East Carolina University and Vidant's flagship hospital in Greenville.

Vidant Medical Center has been the teaching hospital for Brody for more than 40 years. The hospital and the UNC system have had an agreement since 1975 that allowed the UNC Board of Governors to appoint nine of the nonprofit hospital's 20 board members, with the rest appointed by the Pitt County Board of Commissioners.

Because of that partnership, Vidant has been exempted from fees that private hospitals have to pay to the state Department of Health and Human Services. But in April, the Vidant board voted to end that partnership and give itself the power to appoint the nine seats formerly controlled by the university system.

UNC sued to temporarily block the change so the two sides could discuss the move.

The fight spilled over into the legislature in May when the Senate inserted a provision into its budget that would repeal the hospital’s exemption from the “supplemental fee,” which Vidant officials said would mean a $35 million hit to the facility's budget.

Under the deal announced Wednesday, ECU's chancellor and Brody's dean will fill two seats on Vidant Medical Center's board, and another seven trustees will be nominated by the hospital board for approval by the UNC Board of Governors.

Dr. Michael Waldrum, Vidant Health's chief executive, also will be designated as official liaison to the ECU Board of Trustees Health Sciences Committee, and Brody and Vidant Medical Center will hire a consultant to assess the financial relationship between them.

"We are pleased that this agreement honors the long-standing partnership between Vidant, Pitt County and East Carolina University," Randy Ramsey, chairman of the Board of Governors, said in a statement. "ECU’s Brody School of Medicine and Vidant Medical Center play an important and vital role in ensuring quality health care for eastern North Carolina and future generations of medical professionals for all of North Carolina."

"There is nothing more important than the people we collectively serve throughout eastern North Carolina," Waldrum said in the statement. "Everyone involved understands the unique challenges facing our rural communities. A strong partnership is vital as we work together to support and train the next generations of medical professionals and to deliver high quality care close to home."

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