In a significant development in the healthcare sector, the Wake County Board of Commissioners is set to decide on a pivotal vote. This decision could see WakeMed’s articles of incorporation and a land agreement with the county being altered, facilitating a merger with Atrium Health, a prominent healthcare system based in Charlotte.
Atrium Health has pledged an investment exceeding $2 billion to enhance WakeMed’s “strategic initiatives” over the next ten years. The merger, already approved by WakeMed’s Board of Directors, will maintain WakeMed’s status as a nonprofit entity under the sole membership of Atrium.
“WakeMed and Atrium Health are united in a shared commitment to serving our communities, and by building upon our complementary strengths, we can have an even greater impact on the health and well-being of Wake County and the entire state,” stated Donald Gintzig, WakeMed’s president and CEO.
Both WakeMed and Atrium are nonprofit organizations, with Atrium’s parent company, Advocate Health, ranking as the third-largest nonprofit health system nationally. The merger would extend Atrium’s operations to encompass hospital systems in Charlotte, Raleigh, and Winston-Salem.
Eugene A. Woods, Advocate’s CEO, remarked, “This combination is about meeting people where they are — with care that fits their lives and stays rooted in the community. It starts with a $2 billion investment in Wake County — one of the largest health care commitments this region has ever seen — but the impact goes far beyond dollars.”
WakeMed, which operates three community hospitals in Wake County offering nearly a thousand beds, stands to gain significantly. The facilities include a flagship hospital on New Bern Avenue, a 208-bed hospital in Cary, and a 77-bed hospital on Falls of Neuse Road.
Among its unique features, the New Bern Avenue hospital houses the county’s only Level I trauma center and pediatric intensive care unit.
Atrium’s Planned Investment
Atrium’s $2 billion investment will support various expansions and new projects over the coming decade:
- Redevelopment of the New Bern Avenue campus, increasing inpatient capacity.
- Expansion of facilities in Cary and WakeMed North Hospital to add “much-needed” inpatient beds.
- Construction of two new Healthplex locations providing emergency and outpatient services.
- Progression of a 56-acre medical complex in Garner, featuring a 46-bed acute care hospital and a 150-bed mental health hospital.
According to WakeMed, these efforts are projected to create 3,300 new jobs in Wake County within five years. Furthermore, the merger aims to enhance financial assistance for patients, increasing eligibility from 300% to 400% of the federal poverty level.
Treasurer’s Concerns
N.C. State Treasurer Brad Briner has voiced concerns about the merger, citing potential negative impacts from reduced competition. “There is a simple business principle that when suppliers consolidate and competition is reduced it is the consumers who suffer,” he commented.
The State Health Plan, covering approximately 750,000 North Carolinians, is focused on reducing healthcare costs through competitive strategies, which could be affected by this merger.
Research by Rand Corporation in 2022 indicates that hospital mergers often escalate consumer costs, with price increases averaging 10% when hospitals within the same state merge.
Both UNC Health and Duke Health will continue their operations in Wake County. Meanwhile, the N.C. Attorney General’s office, through spokeswoman Bailey Aldridge, assured that the merger will undergo thorough review to ensure patient affordability and care quality.
Representative Mike Schietzelt highlighted concerns over the merger’s rapid progression, advocating for more time and transparency.
Changes to the Board
A proposed restructuring of WakeMed’s board would involve the Wake County commissioners appointing eight members, with Atrium selecting the remaining six. This change aims to streamline governance following WakeMed’s historic transition from a county-owned to an independent nonprofit system in 1997.
