Surry County votes to seek sole membership of Hospice of Surry County after Hugh Chatham change of control

The Surry County Board of Commissioners, sitting as the governing body of the Northern Hospital District of Surry County, on July 21 adopted a resolution declaring its intent to exercise a contractual right to become the sole member of Hospice of Surry County Inc.

The action follows a change of control at Hugh Chatham Memorial Hospital: on July 1, Atrium Wake Forest Baptist became Hugh Chatham’s sole member, a change the board said triggered a provision in a 2005 joint resolution governing hospice ownership. Dan Barrett read the resolution aloud during the Northern Hospital District session.

The joint resolution effective Oct. 1, 2005, described in the meeting packet, gives each member (Hugh Chatham and Northern Hospital District) a 50% ownership interest in Hospice of Surry County. The resolution cited in the meeting says that when one member undergoes a change of control, the other member has “the absolute right to become the sole member of hospice by paying…50% of the net asset value of hospice upon the effective date of the change of control.”

Under the board’s adopted resolution, Northern Hospital District will notify Hugh Chatham’s board and CEO in writing of its demand to become sole member. The resolution states Northern will pay Hugh Chatham an amount equal to 50% of hospice net assets as determined by mutual agreement or third‑party arbitrator if the parties cannot agree, and that payment will be made within 90 days after agreement or determination of that amount.

Commissioners took the vote after a closed-session recess by the Northern Hospital District; the board moved to adopt the resolution and the motion carried. Commissioner Van Tucker moved to adopt the resolution and Commissioner Bill Goins seconded the adoption, and the board announced the motion carried during the meeting.

The resolution does not set the valuation amount or the timetable for closing beyond the 90‑day payment window following valuation agreement; it directs county staff and counsel to proceed with notification and contract preparations. Neither the resolution nor the board’s public remarks specified the hospice’s current net asset value or the form of transfer that would occur after payment.

The board did not take further public action on hospice governance at the July 21 regular meeting beyond adopting the resolution and instructing staff to notify Hugh Chatham and to proceed under the joint resolution’s terms.

Ending: The adopted resolution starts a formal valuation and payment timeline; the board indicated further contract steps and payment arrangements will follow once Northern and Hugh Chatham (or an arbitrator) set the amount to be paid.