Atrium to take control of WakeMed in deal that would bring $2B investment to Wake :: WRAL.com
Atrium Health plans to take control of WakeMed in a deal
that could bring at least $2 billion in new investment to Wake County,
documents filed with Wake County indicate.
County commissioners are expected to vote on a measure
Monday that would help pave the way for the transaction. Charlotte-based Atrium
is part of Advocate Health, one of the nation’s biggest nonprofit healthcare
companies. An official announcement is expected on Tuesday.
“We are excited to announce this transformational step
forward for WakeMed, which supports our ability to deliver on our mission and
improve the health and well-being of our community – and beyond – for
generations to come,” WakeMed said in a statement.
A spokesperson for Atrium declined to comment.
WakeMed’s board unanimously approved the transaction this
month, allowing WakeMed to become affiliated with Advocate Health, which is
associated with Atrium, county records show.
Under the agreement, Atrium would become the sole corporate
interest of the nonprofit that owns WakeMed “to ensure unified governance,
consistent oversight, and alignment with system objectives.” WakeMed would
continue as the same legal entity without dissolving or reincorporating, a
draft of the agreement said. Atrium, in turn, has pledged to make a $2 billion
capital commitment to further WakeMed’s strategic initiatives.
Under the agreement, Wake County commissioners would have
the power to appoint eight of the WakeMed board’s 14 members. Atrium would have
the power to appoint the remaining six members. Atrium would become
The Wake County Board of Commissioners, which has long
appointed board members, plans to vote Monday to amend the articles of
incorporation for WakeMed to enable the transaction. State law requires the
county board, in conjunction with WakeMed’s board, to approve any amendments to
WakeMed articles of incorporation. The Wake County Board of Commissioners also
has an interest in some of the company’s real estate, according to county
documents.
The proposed transaction would likely require further
regulatory review, State Treasurer Brad Briner indicated Friday. He said in a
statement that he expected the attorney general and the Federal Trade
Commission to examine what the proposal could mean for North Carolinians.
“There is a simple business principle that when suppliers
consolidate and competition is reduced it is the consumers who suffer,” Briner
said in a 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.”
Briner added: “If history is any guide, this merger will not
benefit the public.”
