Charlotte, N.C.-based Atrium Health and Raleigh, N.C.-based WakeMed Health & Hospitals announced on May 1 plans to combine into a single health system, which the organizations said involves a $2 billion investment in Wake County (N.C.) to expand facilities, grow the workforce and broaden care access across North Carolina.
The $2 billion investment will come from Atrium Health, a spokesperson for WakeMed confirmed with Becker’s on May 4.
The proposed deal would bring nonprofit WakeMed under Atrium Health, part of Charlotte-based Advocate Health. The systems filed paperwork for the Wake County Board of Commissioners to vote on an amendment to WakeMed’s Transfer Agreement, according to a May 1 news release shared with Becker’s.
The deal is subject to regulatory review, which is expected to take several months.
Details on the deal were limited as of May 4; Advocate Health declined to comment further until after the commissioners’ vote. Meanwhile, some North Carolina officials — including Treasurer Brad Briner — have urged a delay to that vote. Mr. Briner sent a letter urging commissioners to either reject the proposal or negotiate an endowment of more than $1.5 billion from Atrium to offset anticipated price increases for residents.
“Thankfully the Board is going to delay the vote,” Mr. Briner said in a May 3 X post. “This proposed move will increase already high healthcare costs with no meaningful investment in Wake County.”
Here are six things to know about the combination of the health systems:
1. Atrium’s $2 billion investment would expand WakeMed’s footprint through several projects: the redevelopment and expansion of its Raleigh Campus; the expansion of Cary (N.C.) Hospital and North Hospital in Raleigh; added development of inpatient and outpatient services at the WakeMed Garner (N.C.) Whole Health Campus; and construction of two new Healthplex locations to offer standalone emergency departments and outpatient services.
2. The systems said their combination would add more than 3,300 healthcare jobs over five years and expand services to 1 million people statewide. It would also establish North Carolina’s largest nonprofit behavioral health network, with more than 360 inpatient mental health beds, and a statewide virtual care network that would add at least 100,000 virtual visits annually, according to the release.
4. “WakeMed and Atrium Health are united in a shared commitment to serving our communities, and by building upon our complementary strengths, we can have an even greater impact on the health and well-being of Wake County and the entire state,” Donald Gintzig, president and CEO of WakeMed, said in the release.
5. Atrium Health comprises Atrium Health Carolinas Medical Center — an academic medical center in Charlotte that includes Levine Children’s Hospital, Levine Cancer Institute, and Sanger Heart & Vascular Institute — along with 11 hospitals, more than 900 care locations and more than 1,400 physicians across the greater Charlotte region.
6. WakeMed Health & Hospitals comprises a 973-bed network of facilities, including three full-service hospitals, a mental health and well-being hospital, eight emergency departments, a dedicated Children’s Hospital and Rehabilitation Hospital, two trauma centers, and more than 175 physician and physical therapy practice offices. The nonprofit system’s team includes more than 12,800 employees, 1,300 volunteers and 1,300 affiliated physicians, along with a network of more than 900 primary care and specialty providers through WakeMed Physician Practices.
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