News from the South - North Carolina News Feed
Judge throws out HCA’s counterclaims in Stein lawsuit • Asheville Watchdog
An attempt by Mission Hospital’s corporate owner to counter a lawsuit filed against it last year by North Carolina Attorney General Josh Stein has been dismissed.
North Carolina Business Court Judge Julianna Theall Earp filed an opinion Dec. 6 dismissing HCA’s counterclaims against Stein, who had sued HCA and its Mission Health system in December 2023. Stein’s lawsuit alleged they had violated the Asset Purchase Agreement (APA) entered into when HCA bought the hospital system in 2019 for $1.5 billion.
Earp’s opinion focused on the argument the attorney general and his team had made that he is shielded from HCA’s counterclaims by a legal concept known as sovereign immunity. News of the dismissal was first reported by the Asheville Citizen Times.
Sovereign immunity is defined as “the state’s immunity from most kinds of lawsuits unless the state consents to be sued,” according to the University of North Carolina School of Government.
“We are confident that Mission has fulfilled its obligations under the Asset Purchase Agreement, and we intend to defend the lawsuit filed by the Attorney General aggressively,” Mission Health spokesperson Nancy Lindell said Tuesday. “Unfortunately, the lawsuit continues to be a distraction from the important work that Mission continues to do in Western North Carolina.”
The attorney general’s office did not immediately respond to Asheville Watchdog’s request for comment.
Stein’s 2023 lawsuit on behalf of Dogwood Health Trust – the entity responsible for ensuring HCA complies with the APA – alleged the company had violated commitments it made to maintain services related to emergency and oncology care at the Asheville hospital. Those agreements were solidified in the APA, which Stein‘s office oversaw and agreed to before the sale.
In February, HCA sought dismissal of the suit, countering that it had never promised to provide quality health care but had honored its APA commitments. As Earp’s opinion noted, “HCA characterizes the Hospital Service Commitments at issue as requiring that HCA: “(1) maintain Level II trauma capabilities at Mission Hospital; and (2) maintain the capabilities to provide the emergency services and oncology services that were provided at Mission as of January 2019.”
Only a small portion of Earp’s opinion focused on the issue of HCA commitments to the APA, instead explaining why sovereign immunity justified dismissing the counterclaims.
Stein had relied on sovereign immunity in response to HCA’s counterclaims, arguing he could not be a target of legal action. HCA had countered that he couldn’t rely on such protection.
“HCA rejects the contention that sovereign immunity applies because, it argues, this action was brought by the Attorney General, not in his state-sanctioned role, but on behalf of Dogwood Health Trust, a private, non-profit corporation,” the opinion said.
Stein disagreed.
“Plaintiff [Stein] maintains that the APA’s protections and the right to enforce those protections were borne from the Attorney General’s statutory review authority and are consistent with his broad consumer protection mandate and his ‘common law’ right and power to protect the beneficiaries of charitable trusts,’” the opinion said.
No conditions for immunity
In deciding the matter, Earp turned to conditions under which immunity might be waived. None applied, she stated.
She followed that decision by explaining she would not make broad declarations about the case, sidestepping issues related to the APA, stating: “[T]o the extent Defendant’s [HCA’s] declaratory judgment claims present no new controversies and simply amount to the converse of Plaintiff’s declaratory judgment claims already pending before the Court, the Court concludes, in its discretion, that allowing Defendant’s claims to proceed would not serve a useful purpose and would ‘conflict with the interests of judicial economy and efficiency.’”
While Earp dismissed the counterclaims, she denied Stein’s request to avoid having to pay attorneys’ fees, noting it was too early in the case to make such a decision.
Stein’s lawsuit is not the only legal issue facing Nashville-based HCA in western North Carolina.
Buncombe County, the cities of Asheville and Brevard, and Madison County are suing HCA in a separate antitrust lawsuit in federal court.
Mission Hospital also fell under scrutiny of state and federal investigators earlier this year when the U.S. Centers for Medicare & Medicaid Services (CMS) found it had violated federal standards of care and placed it under immediate jeopardy, the toughest sanction a healthcare facility can face. A report following that investigation showed that four patients died in two years related to those violations of care and leadership mismanagement.
CMS lifted the immediate jeopardy sanction in February.
Asheville Watchdog is a nonprofit news team producing stories that matter to Asheville and Buncombe County. Andrew R. Jones is a Watchdog investigative reporter. Email arjones@avlwatchdog.org. The Watchdog’s local reporting during this crisis is made possible by donations from the community. To show your support for this vital public service go to avlwatchdog.org/support-our-publication/.
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News from the South - North Carolina News Feed
Congress debates clear-car fee
SUMMARY: Congress is debating a new federal fee on hybrid and electric vehicles, potentially charging drivers up to $500 annually. North Carolina’s electric vehicle registrations have surged from 10,000 in 2018 to over 110,000 today, with 70% in Wake County. The House budget bill proposes $100 yearly for hybrids and $250 for EVs, though some Republicans seek to double these amounts to offset declining gas tax revenue. Critics argue such fees could deter EV adoption and hinder emission reductions. North Carolina already charges state fees, and the same bill aims to phase out the $7,500 federal EV tax credit after next year.
Congress may add a yearly federal fee, $100 for hybrids and $250 for electric vehicles, with some senators pushing to double it. The charge would stack on state fees and could erase the fuel savings that attract many buyers.
News from the South - North Carolina News Feed
Flooded homes, cars frustrate people living in Wilson neighborhood: ‘I’m so tired’
SUMMARY: Residents in a Wilson, North Carolina neighborhood are expressing frustration after yet another round of flooding damaged homes and vehicles following heavy overnight rains. Water rose to knee level on Starship Lane, flooding driveways, cars, and apartments. One resident reported losing music equipment, furniture, and clothes for the third time due to recurring floods. The rising water even brought worms and snakes from a nearby pond into homes. Debris and trash were scattered as floodwaters receded, leaving many questioning why no long-term solution has been implemented. Residents are exhausted, facing repeated loss and cleanup efforts after each heavy rainfall.
“We have to throw everything out. This is my third time doing this.”
More: https://abc11.com/post/overnight-storms-central-north-carolina-cause-flooding-wilson/16764793/
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News from the South - North Carolina News Feed
McDowell DSS shakeup after child abuse not reported to NC DHHS
More than three months after McDowell County placed its Department of Social Services director on leave, officials have kept quiet about upheaval inside the office responsible for child welfare and a range of other public services. A letter obtained by Carolina Public Press revealed that McDowell DSS failed to alert law enforcement to evidence of child abuse — and violated other state policies, too.
County commissioners placed former McDowell DSS director Bobbie Sigmon and child protective services program manager Lakeisha Feaster on paid administrative leave during a special session meeting on Feb. 3. Another child protective services supervisor resigned the following week.
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County Commissioner Tony Brown told local news media at the time that the county initiated an investigation into its DSS office and the state was involved, but did not provide any details about the cause for the investigation. County commissioners haven’t spoken publicly about the matter since.
That Feb. 21 letter, sent by the N.C. Department of Health and Human Services to Brown and county manager Ashley Wooten, offered previously undisclosed details about issues at the DSS office.
State letter details DSS missteps
According to the letter, McDowell County reached out to the state with concerns that its DSS office hadn’t been notifying law enforcement when evidence of abuse and neglect was discovered in child welfare cases.
The letter didn’t say how or when the county first became aware of the problem, but District Attorney Ted Bell told CPP that he had “raised issues” with the county about DSS prior to Sigmon and Feaster being put on leave. Bell’s office was not involved with the investigation into McDowell DSS.
The state sent members of its Child Welfare Regional Specialists Team to look into the claim. Their findings confirmed that McDowell DSS had failed in multiple instances to alert law enforcement to cases of abuse.
Additionally, the state identified several recent child welfare cases in which social workers failed to consistently meet face to face with children or adequately provide safety and risk assessments in accordance with state policy.
“Next steps will include determining how to work with (McDowell DSS) to remediate the service gaps identified in the case reviews,” the letter concluded.
However, that nearly four-month-old correspondence is the state’s “most recent engagement” with McDowell DSS, a spokesperson for the Department of Health and Human Services told CPP last week.
Sometimes the state will initiate a “corrective action plan” when it finds a county DSS office in violation of state policy. If a county fails to follow through on its corrective action plan, the state may strip the DSS director of authority and assume control of the office.
Just last month, the state took over Vance County DSS when it failed to show improvement after starting a corrective action plan.
The state hasn’t taken similar measures in McDowell.
McDowell considers DSS overhaul
Wooten has served as the interim DSS director in Sigmon’s absence. He told CPP that Sigmon and Feaster resigned “to seek employment elsewhere” on May 31, after nearly four months of paid leave.
That Sigmon and Feaster resigned, rather than being fired, leaves open the possibility that they may continue to work in DSS agencies elsewhere in North Carolina. CPP reported in 2022 on counties’ struggles to hire and retain qualified social workers and social services administrators.
Wooten would oversee the hiring of a new DSS director if the commissioners choose to replace Sigmon, but the county is considering an overhaul to its social services structure that may eliminate the director position entirely.
The restructure would consolidate social services and other related departments into one human services agency, Wooten said. The county may not hire a new DSS director in that case, but instead seek someone to lead an umbrella agency that would absorb the duties of a traditional social services department.
A 2012 state law changed statute to allow smaller counties to form consolidated human services agencies, which are typically a combination of public health and social services departments.
County DSS directors across the state opposed such a change to state statute at the time, but county managers and commissioners mostly supported it, according to a report commissioned by the General Assembly.
At least 25 counties moved to a consolidated human services model in the decade since the law was passed.
McDowell shares a regional public health department with Rutherford County, so it’s unclear what a consolidated human services agency there might look like. Statute does not define “human services” so it’s up to the county what to include in a consolidated agency.
Wooten told CPP that no decisions about such a transition have been made.
This article first appeared on Carolina Public Press and is republished here under a Creative Commons Attribution-NoDerivatives 4.0 International License.
The post McDowell DSS shakeup after child abuse not reported to NC DHHS appeared first on carolinapublicpress.org
Note: The following A.I. based commentary is not part of the original article, reproduced above, but is offered in the hopes that it will promote greater media literacy and critical thinking, by making any potential bias more visible to the reader –Staff Editor.
Political Bias Rating: Centrist
This article from Carolina Public Press focuses on administrative failures within McDowell County’s Department of Social Services, relying on official documents, quotes from public officials, and a chronological recounting of events. It avoids emotionally charged language and refrains from assigning blame beyond documented actions or policies. The piece does not advocate for a specific political solution or frame the story through an ideological lens, instead presenting the issue as a matter of public accountability and governance. Its tone is investigative and factual, reflecting a commitment to journalistic neutrality and transparency without promoting a partisan viewpoint.
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