Editor’s note: State Treasurer Brad Briner will be a guest on the WPTF Morning News on Monday at 7:50 a.m.
RALEIGH, N.C. (WPTF) – The Wake County Board of Commissioners now appears poised to delay a vote on a key step in the proposed combination of WakeMed and Charlotte-based Atrium Health, following growing calls for more scrutiny from state leaders.
State Treasurer Brad Briner wrote to commissioners asking them to delay and reconsider Monday’s scheduled vote on an amendment to WakeMed’s articles of incorporation. Briner said the amendment appears to be required to allow the consolidation of WakeMed with Atrium Health, and he urged commissioners to “proceed with great caution.”
The vote had been scheduled for Monday, May 4, less than three days after the proposed transaction was publicly announced. The item was listed on the board’s consent agenda, which typically does not require discussion unless a commissioner asks for it to be removed. The board has now indicated it will delay the vote.
Briner, who also chairs the State Health Plan, said the plan provides health insurance for about 750,000 people, including state and local employees, public school teachers, retirees and their dependents. He said the State of North Carolina and Wake County Public School System are among Wake County’s largest employers, meaning many people affected by the State Health Plan could feel the impact of the decision.
In his letter, Briner raised three main objections. He argued that hospital consolidation has often led to higher costs or lower quality of care, said WakeMed is financially strong enough to make promised investments without the consolidation and described the effective sales price of WakeMed as “ZERO.”
Briner said WakeMed reported $176 million in net income last year and has substantial borrowing capacity. He argued that Wake County’s continued growth and WakeMed’s financial position mean the proposed $2 billion in capital investment and new jobs would likely happen even without the Atrium deal.
“If you do not feel compelled to stand in the way of this consolidation that is sure to raise prices, then please at least demand consideration from the acquiror in the way that New Hanover and Buncombe Counties have in the past,” Briner wrote. He said Wake County should be able to establish an endowment of more than $1.5 billion from funds paid by Atrium, with a mandate to help keep health care affordable and accessible in Wake County.
Briner closed by saying the Department of State Treasurer stands ready to help analyze the transaction. He urged commissioners not to rush, asking them to learn from Buncombe County’s experience and either reject the proposal or set up an endowment to help offset what he called the “inevitable price increases” from consolidation.
State Auditor Dave Boliek also called for a delay Sunday, saying the proposed transaction raised concerns about transparency. In a statement, Boliek said the lack of transparency “does not instill confidence” and called for greater scrutiny before commissioners act.
A spokesman for Attorney General Jeff Jackson has said his office is watching the situation closely. The State Employees Association of North Carolina has also urged commissioners to vote no or delay the vote, warning that the deal could weaken the State Health Plan’s negotiating position and raise costs for state employees and retirees.
Supporters of the transaction say the combination would bring major investment to the Triangle, including a $2 billion investment to expand WakeMed locations in Raleigh and Cary, create more than 3,300 jobs and expand services for 1 million people across the state.
WakeMed President and CEO Donald Gintzig has said the combination would build on WakeMed’s more than 65-year legacy and help ensure a strong nonprofit health care future for the region. Atrium Health is part of Charlotte-based Advocate Health, one of the nation’s largest not-for-profit hospital systems.
WakeMed was created in 1961 as Memorial Hospital of Wake County and has expanded to include facilities throughout Wake County. Atrium has expanded across North Carolina in recent years, including through its 2020 combination with Wake Forest Baptist. A WakeMed-Atrium deal would give Atrium a major presence in the state’s three largest metro areas.
Stay with WPTF for the latest on this developing story.