Proposed Atrium, WakeMed merger prompts concern from Treasurer Briner

Charlotte-based Atrium Health and Raleigh-based WakeMed plan a “strategic combination” including a $2 billion Atrium commitment to WakeMed’s initiatives.

The release of that information Friday afternoon in an agenda item for the May 4 Wake County Commission meeting prompted a swift note of concern from state Treasurer Brad Briner.

“There is a simple business principle that when suppliers consolidate and competition is reduced it is the consumers who suffer,” Briner said in a prepared statement. “This has been proven to be true time and again in the health care landscape, where prices continue to rise and patients are left with mounting medical debt.”

“I look forward to the Attorney General and FTC carefully scrutinizing this proposal and what it could mean for the people across our state,” Briner added. “If history is any guide, this merger will not benefit the public.”  

Atrium, frequently described as North Carolina’s largest hospital system, is part of Advocate Health, which labels itself the nation’s third-largest nonprofit hospital system.

Founded in 1961, WakeMed has three acute-care hospitals, a physical rehabilitation hospital, and a mental health hospital for a total of 973 beds, according to its website. “Our physician practices are home to more than 350 physicians representing nearly every specialty,” according to the site.

“Recently, WakeMed leadership informed the County of its plans for a strategic combination with Atrium Health, Inc,” according to the information provided for Wake commissioners’ meeting. “Atrium Health combined with Advocate Aurora Health in 2022 to create Advocate Health, Inc. which is headquartered in Charlotte. At its April Board meeting, the WakeMed Board of Directors unanimously approved this transaction, allowing WakeMed to become affiliated with the Advocate Health enterprise.”

“WakeMed intends to convert from a non-member nonprofit to a single-member nonprofit in which Atrium Health becomes the sole member to ensure unified governance, consistent oversight, and alignment with system objectives (‘Transaction’),” the agenda item explained. “WakeMed will continue as the same legal entity without dissolving or reincorporating, and as part of the Transaction, Atrium Health will make a $2,000,000,000.00 capital commitment to further WakeMed’s strategic initiatives.”

The deal acquires Wake County commissioners’ approval of amended and restated WakeMed articles of incorporation. Commissioners would maintain control of eight seats on WakeMed’s 14-member governing board.

“WakeMed will restate its commitment to maintaining or improving the existing level of health care services to citizens of Wake County and surrounding areas, including indigent and community health care,” according to the commissioners’ agenda document. “The County is not contributing any funding and will not be conveying any new property or assets to WakeMed as part of the Transaction.”

“Proposed Atrium, WakeMed merger prompts concern from Treasurer Briner” was originally published on www.carolinajournal.com.