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In a nearly four-hour-long work session Monday afternoon, the Wake County Board of Commissioners heard from WakeMed and Atrium Health leaders about the proposed $2 billion merger between Wake County’s independent nonprofit hospital system and Charlotte-based Atrium. The presentation comes ahead of a vote commissioners are expected to take later this summer on changes to WakeMed’s articles of incorporation and property agreement.
Here are five things we learned from the presentation.
1. WakeMed approached Atrium Health about a merger and undertook a lengthy due diligence process.
According to WakeMed Board of Directors chairman Thad McDonald III, WakeMed in early 2022 issued a request for proposals (RFP) seeking partners in oncology. Atrium Health was the only respondent, and further conversations revealed that the two nonprofit hospital systems shared a similar mission and values, McDonald said. Following a “deep dive” into Atrium’s culture and commitment to Our NC neighbors, at the end of 2023, WakeMed directed attorneys to look at a partnership between the two entities and in January 2024, proposed the merger to the WakeMed board’s executive committee.
“Our initial response … was much the same as some of you here and members of the community: “What, give up our autonomy? We’ve always been fiercely proud of our independence,” McDonald said. “However, looking at the future of healthcare and especially the challenges facing safety net hospitals like ours, we felt it would be irresponsible not to give it vigorous due diligence.”
Over the next two-and-a-half years, McDonald said, WakeMed took a deep look at the state of healthcare in North Carolina, the future of so-called safety net hospitals (which provide care to vulnerable people and those who can’t pay), and its capital needs.
The evaluation “revealed almost insurmountable obstacles,” McDonald said.
After engaging advisors, finalizing terms, and receiving unanimous approval from its board, WakeMed leaders presented the proposal, including a transfer agreement and updated articles of incorporation, to the Wake County Board of Commissioners in a closed session in March. The item was placed on the commissioners’ consent agenda for their May 4 meeting, but the vote was delayed following public outcry from stakeholders concerned about the speed and secrecy surrounding the deal, the potential for increased healthcare costs to residents, and Atrium’s level of investment in WakeMed.
2. Leadership says the merger would mean more support for mental health services, affordable housing, and lower-income residents in Wake County
Gene Woods, CEO of Atrium Health’s parent company, told the commissioners that one of the hospital system’s main goals is to “make a large system feel like a small…
