week of 3/12/08
 
 
 
  Economic impact of hospital crisis far-reaching
By Julia Merchant • Staff Writer

Mieko Thomson was in a bind.

The Haywood County Realtor was showing property to a retired couple considering a move to the area. Usually, Thomson would have no hesitation touting the many benefits of retiring in Haywood County — the cost of living, the beautiful scenery, the cultural activities. But there was one benefit — quality, accessible healthcare — that Thomson wasn’t sure how to address. How should she tell the couple that the closest hospital for many retirees was now a 40-minute drive either direction?

Turns out, Thomson wouldn’t have to. The couple phoned the next day after seeing the Haywood Regional Medical Center crisis on the news. Their plans to buy property in Haywood County are currently on hold until they can be assured of receiving care closer to home.

“Retirees trying to relocate here are going to have a second thought about moving here,” Thomson says.

This comes as devastating news to Realtors who are already combating a depressed market due to the lending industry’s problems and the national economic slowdown. Home sales have dropped 45 percent in Haywood County since Jan. 1, 2007. Throw a hospital whose credibility and very existence are being questioned into the mix, and the situation doesn’t look good.

“This is just another blow,” says Johnnie Cure, owner of Southern Exposure Realty.

For seniors looking for a second home, the availability of quality healthcare is a top priority. The American Association of Retired Persons lists hospital and healthcare facilities as a quality of life factor to look for when relocating, along with other attributes like housing cost, continuing education and climate, according to North Carolina AARP spokesman Bob Garner.

Realtors say clients ask about the local hospital almost without fail.

“I would say without exception, those people ... are always asking about our hospital, our quality of healthcare,” says Johnnie Cure of Southern Exposure Realty in Waynesville.

“They want to know where the hospital is, what kind of facilities they have, and that is a very specific request,” agrees Mary Border, owner of Sunburst Realty.

Until recently, the answer to questions about local healthcare has been a piece of cake, with HRMC serving as a major selling point for clients.

“The hospital is one of the things we’ve always pointed to as being something of real value in our community,” Border says.

“In the past, we have felt very comfortable about promoting the quality of doctors and the quality of healthcare that is offered at HRMC,” Cure adds.

Now, Realtors don’t know what to say. Already, they’re being peppered with questions about the situation at HRMC, which recently lost its Medicare and Medicaid funding after a series of failed inspections.

Retirees make up more than 70 percent of both Border’s and Cure’s clientele, so the question of Medicare certification has taken on a particular importance.

“It’s like we stepped into an earthquake zone right now. We really don’t know what to say to those people,” says Cure. “We’ve constantly had people ask about it. We hope they haven’t read the local newspapers, that they haven’t watched WLOS. What are we going to say when they ask, ‘how’s your healthcare?’ When someone says how in the world could your hospital lose that kind of credibility? We have no answers.”

The onslaught hasn’t hit full force yet for Border, but she’s bracing for it. Many current and potential second homeowners wait until spring to travel to the area when the weather warms up, and in the next few months Border expects the questions to come from those who may not have heard about the situation.

“If they don’t take The Mountaineer or Asheville Citizen-Times or the local paper, they may not know what is happening. When they start coming back in, there’s going to be more and more questions asked and reactions from those people,” Border says.

To tell the truth

By law, Realtors must disclose the truth about HRMC’s situation. And when retired clients on Medicare discover they can’t receive care at their local hospital, Realtors are worried they’ll look for homes elsewhere.

“I’ve had people say point blank, I have a heart condition, I need to be within x number of miles from a hospital. If you have to go to Asheville or Sylva, that’s not close enough for many people,” Border says.

“There would be people leaving here if they didn’t get their certification back,” she adds. “There are people who have chronic health problems that need access to medical facilities. They’ll move to Jackson or Buncombe County or someplace where there is a viable hospital.”

Admittedly, the hospital will likely be eligible to regain its Medicare and Medicaid funding in the next few months, so some second-home seekers won’t ever have to go to Mission in Asheville or WestCare in Sylva. But the stigma of what happened at HRMC could affect people’s decision about coming to the area.

“How many years is it going to take to regain the confidence again of the community?” Cure asks. “This is not just because the hospital gets recertified. There’s an immediate financial goal, but the confidence is what has been sacrificed here.”

Spreading through the economy

Realtors spoke about the trickle-down effect a slowdown in home sales could have on the community.

“I’ll tell you what — when it’s not good for real estate, the ripple effect goes everywhere. The attorneys won’t be having the closings, the home inspectors, the people who are building — when you hurt real estate, you hurt the world,” says Cure.

“No one really stops to think about the economic impact of housing on the community,” agrees Border. “It’s not just the houses — it’s the attorneys, the furniture stores, the grocery stores, the surveyors, the people that mow lawns.”

Alan Best, president of the Haywood County Homebuilders Association, said he’s “praying” the HRMC crisis will be short term.

“If this were something that were a long-term situation, it would definitely be a negative impact,” said Best.

John Fields, who owns Haywood Landscapes, says 90 percent of his clients are second home-owners. Fields hasn’t seen an impact from the hospital decertification, but since landscaping usually comes on the tail end of a project, he may not feel the effects of a slowdown in home sales for up to two years.

Fields is hopeful that his business won’t be affected if the situation is straightened out quickly.

“If it drags out over a year and if they can’t get the public’s opinions straightened out pretty quickly, I don’t know,” he admits.

Like Fields, Buffy Messer, executive director of the Downtown Waynesville Association, is optimistic. Her organization consists of downtown art galleries, craft vendors and other merchants who rely heavily on the retiree and second-home market. Messer doesn’t hesitate to acknowledge the heavy impact the hospital’s well-being has on business.

“We recognize HRMC as an essential part of the economic stability of the community, as well as downtown,” she says.