The potential takeover of WakeMed by Atrium Health has been put on hold as the Wake County Board of Commissioners decided to delay their vote on the deal for at least 90 days. This postponement aims to provide the community an opportunity to voice their opinions and concerns regarding the hospital system’s acquisition by Atrium Health, based in Charlotte.
Chairman Don Mial of the Wake County Board emphasized the importance of transparency and community involvement in the process. “While the joining of these hospitals may be positive for Wake County, we want to be fully open and transparent about the process, and that includes offering ample time for the public feedback,” Mial stated, hoping that Atrium and WakeMed will consider the community’s feedback.
The announcement of the merger, made just four days prior to the scheduled vote, raised concerns among state and local officials. Various issues, such as potential cost increases and service quality impacts, were highlighted. Criticism also arose from the perceived rushed nature of the decision-making process.
Rep. Erin Paré, R-Wake, expressed concerns on social media, stating that the timing of the announcement and the swift scheduling of the vote were alarming. “The late announcement on Friday, coupled with a hastily scheduled consent agenda vote today by the Wake County Commissioners, raised alarm bells. The lack of transparency and process is concerning,” Paré wrote, urging a delay in the decision.
The proposed agreement entails updating WakeMed’s articles of incorporation and a land transfer agreement with Atrium Health, facilitating the latter’s control over WakeMed. It was initially slated as the 16th item on the Wake Commissioners’ Monday agenda, listed as a consent agenda item.
A joint announcement from WakeMed and Atrium Health revealed Atrium’s intention to invest $2 billion over the next decade, promising the creation of 3,300 jobs in Wake County. Key projects include the redevelopment of WakeMed’s flagship hospital on New Bern Avenue, adding inpatient beds in Cary and North Raleigh, and constructing new facilities with emergency rooms and outpatient services.
‘I would rather this deal not happen’
State Treasurer Briner expressed skepticism over the consolidation, citing past mergers in North Carolina that led to increased patient costs and declined care quality. “I am not aware of any example where these types of transactions have resulted in patients being better off, and it is highly unlikely that this one will be the first,” Briner noted.
Briner, who oversees the State Health Plan, warned about potential price hikes due to the merger, which could adversely affect the plan’s finances. He argued that the proposed $2 billion investment by Atrium might occur regardless, given Wake County’s growth and WakeMed’s borrowing abilities.
“To be clear, it’s not my preferred outcome. I would rather this deal not happen because I think an independent WakeMed is better for the people of Wake County, better for the State Health Plan,” Briner commented, urging for a cautious approach similar to past mergers in other counties.
Officials from both WakeMed and Atrium Health’s parent company, Advocate Health, are scheduled for a media briefing the following Tuesday.
Proposed legislative oversight
Rep. Sarah Crawford, D-Wake, announced plans for meetings with officials from both WakeMed and Atrium, alongside the State Treasurer’s Office, to gain insights into the merger’s implications.
House Democrats, meanwhile, are advocating for legislative measures requiring approval from the Attorney General, State Auditor, and State Treasurer for any hospital merger or consolidation. Their proposal includes public hearings to assess the impact on healthcare accessibility and affordability.
Governor Josh Stein expressed support for increased oversight, citing past legal actions against healthcare systems that failed to meet service promises. His spokeswoman, Onotse Omoyeni, underscored the need for legislative empowerment of the Attorney General to ensure public benefit and transparency in such transactions.
‘Pull back the curtain’
State Auditor Dave Boliek criticized the limited time provided for public scrutiny of the deal. “The people of Wake County and stakeholders who are affected by this move deserve to have more than a weekend to voice their opinions on a hospital takeover of this scale,” Boliek stated, emphasizing the necessity of transparency.
Boliek highlighted the significant public funding involved in WakeMed’s operations and called for the full disclosure of deal details to the public. “It’s time to hit pause, pull back the curtain, and explain exactly what is being (voted) on, the information you have been provided, and the impact this would have on families, employees, and local businesses in Wake County,” he insisted.
