Two health systems based in North Carolina, Atrium Health And WakeMed Healthannounced its intention to merge last week. Under the proposed deal, Atrium plans to invest $2 billion in WakeMed and create 3,300 new jobs in Wake County, North Carolina.
However, the deal already appears to have gotten off to a rocky start. The Wake County Board of Commissioners was scheduled to vote Monday to move forward with the transaction, but postponed it, citing concerns about the transparency and pace of the deal.
Atrium, based in Charlotte, is the largest health system in North Carolina and is also part of Health advocatethe nation’s third-largest nonprofit system. The entity was formed in 2022, when Illinois-based Advocate Aurora Health and Atrium merged.
Atrium currently operates 40 hospitals and more than 1,400 healthcare facilities in the Carolinas, Georgia and Alabama.
WakeMed, based in Raleigh, operates three acute care hospitals, a mental health hospital and a physical rehabilitation hospital. Its competitors in the metropolitan area include UNC Health And Duke Health.
The organizations say the merger aims to improve clinical services and improve health outcomes in Wake County. But state leaders talked about it this weekend.
For example, North Carolina State Treasurer Brad Briner said the deal “will increase already high health care costs without any significant investment in Wake County,” in a statement. post on.
He sent a letter to the Wake County Board of Commissioners, arguing that consolidating two large health systems would reduce competition in the region, giving the combined entity more leverage to negotiate higher prices with payers. Briner urged the board to either reject the transaction or demand a substantial financial allocation – “well in excess of $1.5 billion” – from Atrium to help offset future price increases.
Dave Boliek, North Carolina State Auditor sent a letter at the board of directors this weekend as well. He said the deal appears to lack clarity and public accountability given its scale and potential long-term impact on health care costs.
“The rollout of the hospital takeover project raises questions. The lack of transparency does not inspire confidence, in fact, it calls for further examination and explanation,” Boliek wrote.
It’s also highly unlikely that the average Wake County resident “is aware of the impending takeover,” he added.
The board decided to consider concerns expressed by Briner, Boliek and other political leaders. In a statement Published Monday, he said he delayed his vote to allow for more public input.
“The Board made this decision to provide hospitals time to engage with the community, so that they – along with the County Commission – can hear residents’ comments and concerns regarding the combination,” the release said.
Early negative reactions suggest the merger could face a longer and more controversial path.
Photo: Jordan Lye, Getty Images