Raleigh, N.C.-based WakeMed Health & Hospitals said it plans to continue pursuing its proposed combination with Atrium Health after receiving an unsolicited partnership proposal from Chapel Hill, N.C.-based UNC Health earlier this month.
The development underscores the ongoing debate surrounding WakeMed’s proposed deal with Atrium Health, which has drawn scrutiny from state officials and Wake County leaders over competition, governance and healthcare costs.
WakeMed and Atrium Health announced plans May 1 to combine into a single system. Under the proposed agreement, nonprofit WakeMed would join Atrium Health — part of Charlotte, N.C.-based Advocate Health — in a deal the systems said would bring a $2 billion investment to Wake County, N.C., to expand facilities, add jobs and broaden access to care statewide. Wake County commissioners later delayed a vote on the proposal to allow for additional public input.
WakeMed confirmed it received a proposal from UNC Health May 5, days after the Atrium transaction became public.
“Our board of directors conducted a thorough, deliberate, two-year evaluation process for the future of WakeMed, which included potential partners,” WakeMed said in a statement shared with Becker’s. “The board determined that a strategic combination with Atrium Health is in the best interest of WakeMed and the communities we serve.”
WakeMed also said a merger with UNC Health could reduce competition in Wake County, where UNC Health operates UNC Rex Hospital in Raleigh.
“Combined, WakeMed and UNC Health would control 80% of the healthcare market in Wake County,” the system said. “We have heard from numerous stakeholders, including the state treasurer, that maintaining robust competition is important for our rapidly growing region.”
The health system said it will continue engaging with the community regarding its future plans, but “at this time, however, that path lies with Atrium Health.”
In a separate statement shared with Becker’s, UNC Health confirmed it had submitted the proposal and said it remains interested in exploring a broader partnership with WakeMed.
“UNC Health has expressed interest in exploring a broader partnership with WakeMed,” the system said. “We remain ready and willing to be a partner in whatever best serves the long-term health of Wake County residents and all North Carolinians.”
UNC Health also emphasized its longstanding academic partnership with WakeMed through the UNC School of Medicine, which includes residency and specialty training programs and has trained roughly 30% of WakeMed’s medical staff.
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