Bill would sell Greenville hospital system. What does it mean for Palmetto Health?

The future of a partnership between Palmetto Health of Columbia and Greenville Health System was unclear Thursday after Upstate legislators filed a proposal to sell the Greenville hospital system and distribute the proceeds to various groups.

In an op-ed submitted to The State, the Greenville County Legislative Delegation wrote that its trust in Greenville Health System was “shaken” when the health system “unilaterally restructured and leased our publicly-owned, multibillion dollar asset without the legislative delegation’s input or consent as the law requires.”

“Matters were made worse when GHS announced its merger with Palmetto Health,” the op-ed continued.

The Greenville Hospital System changed from a public nonprofit to a private, nonprofit health system in 2015, according to greenvilleonline.com, the website for The Greenville News.

The lawmakers on Thursday filed House Bill 4945 which would sell the Greenville system to a private entity. They wrote in their op-ed that the expected proceeds would range between $2 billion and $3 billion.

The two companies announced last June that they would join in partnership, becoming the largest private employer in South Carolina with more more than 28,000 health care workers and 2,800 physicians.

It was unclear Thursday how this proposal would affect the partnership and Palmetto Health.

“Since this bill was just filed, we need time to review it and to get a better understanding of its intent and the potential ramifications,” Palmetto Health spokeswoman Tammie Epps said in an email.

Lynn Bailey, a Columbia health care economist, expressed doubt that the legislators have the authority to sell the Greenville system.

What's more, the legal partnership between the Greenville and Palmetto Health systems is already complete and a new nonprofit entity already formed and operating.

"They'd have to figure out how to undo things that have been legally done," Bailey said.

The bill would have an easier path to approval if it’s considered local legislation, which means that support by a majority of Greenville legislators would virtually assure passage. But State Sen. William Timmons, a Greenville Republican, told greenvilleonline.com that because the bill was assigned to the House Judiciary Committee, the legislation will not move as quickly.

Most Greenville legislators back the legislation, he said.

The Palmetto Health system includes Palmetto Health Richland, Palmetto Health Baptist and Palmtto Health Baptist Parkridge in Columbia and Palmetto Health Tuomey in Sumter. The Greenville Hospital System has facilities in Greenville, Oconee County, Laurens County, and Greer. The two companies have co-owned Easley Baptist Hospital in Pickens County since 2009.

This story was originally published February 15, 2018 at 5:46 PM with the headline "Bill would sell Greenville hospital system. What does it mean for Palmetto Health?."