Wake County commissioners are scheduled to vote Monday on a measure that would enable WakeMed to merge with Atrium Health, ending a long pause in the plans after the proposed deal received criticism from state and local officials.
Under the deal, Atrium would become the sole corporate member of the nonprofit that owns WakeMed, an effort “to ensure unified governance, consistent oversight, and alignment with system objectives,” a county summary of the deal said. WakeMed would continue as the same legal entity without dissolving or reincorporating, the summary said.
Other WRAL Top Stories
Wake County commissioners would still have the power to appoint eight of the WakeMed board’s 14 members. Atrium would be allowed to appoint the remaining six members. WakeMed’s existing leadership team is expected to stay in place after the transaction closes, a person with direct knowledge of the transaction told WRAL.
State law requires the Wake County Board of Commissioners, in conjunction with WakeMed’s board, to approve any amendments to WakeMed articles of incorporation. The board is expected to vote on those changes Monday, which would pave the way for the deal, along with a transfer agreement.
The transfer agreement builds Wake County into WakeMed’s future governance. The agreement requires Wake County commissioners to approve any sale or transfer of WakeMed to a third party not affiliated with Atrium, or any replacement of Atrium as WakeMed’s member. Changing those transfer protections would require approval from Atrium, at least 12 of WakeMed’s 14 voting board members and the Wake County Board of Commissioners.
WakeMed’s board unanimously approved the transaction in April, allowing WakeMed to become affiliated with Advocate Health, county records show. Atrium is part of Advocate Health, one of the biggest nonprofit academic health systems in the country. The Wake County Board of Commissioners originally scheduled a vote for May 4. But after pushback from state officials, commissioners delayed the vote to gather information and public comment related to the combination.
“We are steadfast and focused on finalizing the proposed combination of Atrium Health and WakeMed and remain confident it will strengthen care for patients and communities across Wake County and the broader region,” WakeMed said in a statement late Thursday.
WakeMed is one of the smallest hospital networks in the state. By partnering with Atrium, WakeMed could gain easier access to capital, which could accelerate its expansion plans throughout the county as it seeks to compete with other providers such as UNC Health and Duke Health. It would also enable Atrium to expand its reach across the state, into the fast-growing Triangle market. Atrium promises the deal will create thousands of jobs.
The companies have said the deal would improve the quality of healthcare, attract and develop medical talent and accelerate research and innovation, laying the foundation for more clinical specialties and subspecialties.
The proposed merger would likely require additional regulatory review. Critics of the deal — including a bipartisan group of state and local officials — fear it will increase costs for patients.
The deal has been opposed by Republican State Treasurer Brad Briner has called on the Federal Trade Commission to examine what the proposal could mean for North Carolinians. Briner — who oversees the North Carolina State Health Plan, which provides coverage to hundreds of thousands of state employees, retirees and their families — has warned that the deal will harm consumers. “If history is any guide,” Briner said when the deal was announced, “this merger will not benefit the public.”
Democratic Gov. Josh Stein has also raised skepticism. In a letter to WakeMed and Atrium last month, Stein’s office pressed the partners on the benefits to patients. “What guarantees has Atrium provided to ensure that WakeMed’s prices will not increase if the combination is consummated?” Stein’s office said in the letter.