North Carolina treasurer asks UNC Health Care for $1B bond to ensure cost savings from pending merger

North Carolina Treasurer Dale Folwell is calling for Chapel Hill, N.C.-based UNC Health Care to issue a $1 billion performance bond to guarantee cost savings from the health system's pending merger with Charlotte, N.C.-based Atrium Health, according to The News & Observer.

UNC Health Care and Atrium Health, previously named Carolinas HealthCare, signed a letter of intent to merge in August 2017, but the systems have released few details about the proposed deal.

"With a lack of details on this merger and little evidence that mergers like this have generated savings for the public, I feel I have a fiduciary responsibility to pursue this guarantee that will protect North Carolina taxpayers," Mr. Folwell said in a statement to The News & Observer.

UNC said it will work with the state treasurer to develop ways to meet state employees' healthcare needs at the lowest cost. However, cutting costs is not the system's top priority. "Our No. 1 job is taking care of patients. We do not control inflation or other variables associated with the cost of care," UNC said in a statement to The News & Observer.

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