North Carolina Attorney General’s Case Against HCA Healthcare Moves Forward
In a significant legal development, a North Carolina judge has decided that the lawsuit against HCA Healthcare, concerning the conditions at Mission Hospital in Asheville, will proceed to trial. This decision follows a ruling by North Carolina Business Court Judge Julianna Theall Earp, who denied requests from both HCA Healthcare and Attorney General Jeff Jackson for a pre-trial resolution.
Judge Earp’s 55-page decision also dismissed HCA’s attempt to exclude testimony from an expert witness presented by Jackson’s office. Jackson, who took over the case after Josh Stein’s election as governor, expressed his satisfaction with the ruling, stating, “HCA threw every argument against the wall to try to get this case thrown out, but they didn’t stick.” He emphasized his commitment to defending healthcare services in western North Carolina.
Nancy Lindell, representing Mission Health, maintained confidence in HCA’s compliance with the purchase agreement, asserting their dedication to high-quality care for the community. The lawsuit, initially filed by Stein in December 2023, accuses HCA of breaching the terms agreed upon during its $1.5 billion acquisition of the nonprofit Mission Health System in 2019.
Debate Over Contract Terms and Healthcare Services
The core contention lies in the interpretation of the contract’s requirement that HCA “shall not discontinue the provision” of specific services for a decade. The attorney general’s office claims that HCA has reduced the quality and availability of services such as emergency and cancer care, violating the agreement. HCA argues that only the complete cessation of services would breach the contract, necessitating a trial to resolve these differing interpretations.
Judge Earp noted the reasonable interpretations from both parties and emphasized the need for a trial to consider additional evidence. She also upheld the inclusion of Dr. Kia Parsi, whose expertise is deemed relevant to evaluating hospital performance, as an expert witness.
Ongoing Scrutiny and Compliance Issues
As the case proceeds, HCA faces ongoing scrutiny regarding its management of Mission Hospital. Affiliated Monitors Inc., the independent body overseeing HCA’s compliance, recently reported two potential noncompliance issues in 2025, including the cessation of certain services and a serious safety designation by the Centers for Medicare and Medicaid Services (CMS), which has been a recurring issue for Mission Hospital.
Despite these challenges, Mission Hospital is pursuing expansion in Asheville, with state approval granted to add 95 acute-care beds. However, this decision has been contested by competitors AdventHealth and UNC Health West Medical Center.
Community concerns over staffing and safety persist, as Mission continues its efforts to address these issues while navigating legal and regulatory landscapes.
