Area nonprofits could reap the benefits of just-released additional funds from the sale of New Hanover Regional Medical Center (NHRMC), according to an announcement from New Hanover County on Thursday.
That additional $75 million has been distributed equally between the New Hanover Community Endowment and the NHRMC Foundation, as outlined in the asset purchase agreement, which specified setting aside $100 million in an escrow account to address any trailing liabilities associated with closing operations of NHRMC.
The agreement outlined that on the second anniversary of the transaction closing, $75 million of the escrow should be released minus any liabilities that had been paid from the escrow.
“Based on the wind-down process and liabilities after two years, $75 million has now been distributed, with $37.5 going to the New Hanover Community Endowment and $37.5 million to the NHRMC Foundation,” the county’s news release stated.
The endowment’s mission is to address health and welfare needs in the county.
“The Community Endowment was created by the New Hanover County Board of Commissioners, and this additional investment places its total assets from the sale of the hospital at more than $1.3 billion and that is simply incredible,” New Hanover County Board of Commissioners Chair Bill Rivenbark said in the release. “The endowment was created by New Hanover County to help change lives, ensure access and opportunity for every single person, and transform our community; and this additional money will help them take their mission even further. The work of the NHRMC Foundation will also benefit greatly, with this investment allowing them to increase their important support for hospital employees and patients now and in the years to come.”
The remaining funds in the escrow will be distributed equally to these same two entities on the fourth anniversary of the transaction’s closing, per the agreement.
The endowment plans to use the additional funds to support future grant opportunities for nonprofits in New Hanover County, according to an endowment news release.
“This new funding is an exciting development for the Endowment,” said William Buster, president and CEO of NHCE, in the release. “These additional assets create new possibilities for the Endowment and additional opportunities for our partners to make even greater progress toward creating transformational change here in the county.”