RALEIGH, N.C. (WPTF) – Wake County Commissioners are set to vote Monday (September 21) on moving forward with a “strategic combination” of WakeMed with Atrium Health.
The deal first surfaced in May, when the council had the item on the agenda, but there was little information announced in advance. Since then, there have been a number of community meetings and other discussion surrounding the deal.
WakeMed is asking the Commissioners to approve changes to two legal documents, enabling the hospital to proceed with regulatory reviews.
The articles of incorporation define how many members the Board of Commissioners can appoint to the WakeMed Board of Directors, how those members are removed, and where they must reside. The amended version of this document continues to allow the Commission to appoint eight members to the 14-member WakeMed Board of Directors. It also confirms that the eight appointees must live within Wake County. This ensures that Wake County and its residents will continue to have a say in how WakeMed meets its obligations after this combination.
According to a press release from the county, the transfer agreement restates WakeMed’s commitment to maintaining or improving the level of healthcare services it provides to residents from across the region including indigent and community healthcare.
Opponents of the arrangement, which critics refer to as a merger, argue the deal would increase costs and reduce services. A “Stop the Atrium Takeover” rally is set for Monday at 12:30 in Nash Square, prior to the scheduled vote at 2 p.m.
One of the rally’s organizers, the Patients Union, laid out why they believe the arrangement will be harmful
According to information posted on social, the Patients Union points out that “WakeMed acknowledged in its letter to the Governor that Atrium’s $2 billion “investment” is **not new funding from Atrium. It would come first from WakeMed’s own revenues, debt financing, and other sources—with Atrium only covering any remaining shortfall.”
They also pointed out that six years after taking over Wake Forest Baptist Hospital in Winston-Salem, their prices have grown 8% more than the average for the state. And they are cutting nurse compensation in critical areas like labor and delivery while their CEO makes at least $25 million a year.
Their statement went on say “they have refused to allow the public to see the deal. If it’s such a good deal for our community, we say do an open bidding process and we’ll know it’s a good deal.”
The State Employees Association of North Carolina, which represents many state workers, and State Treasurer Brad Briner are also opposing the deal, warning of increased costs and reduced services.
The county points out the commissioners are not involved in any way in WakeMed operations and policy setting. Since WakeMed’s separation from Wake County government nearly 30 years ago, the County’s role has been limited to appointing directors to the WakeMed Board. The County is not considering contributing any funding or any new property or assets to WakeMed as part of the proposed combination.
The WakeMed campus on New Bern Avenue in Raleigh was once the county hospital. In 1997, Wake County agreed to transfer the hospital to the nonprofit WakeMed Corporation under a state law that allows nonprofits to operate community hospitals if they:
• Agree to provide care to residents who are unable to pay and
• Operate as a nonprofit hospital, open to all without discrimination.
The 1997 agreement and the statute governing such transfers provide that if the hospital ever ceased operating as a nonprofit community general hospital open to the public and providing indigent care, it could revert to the county. This agreement also requires approval of the Commission for any change in the management structure of WakeMed.
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