Raleigh, N.C.-based WakeMed Health & Hospitals has withdrawn its hostile $750 million bid to takeover Rex Healthcare, also based in Raleigh, from state-owned University of North Carolina Health Care System, based in Chapel Hill, according to a Times-News report.
WakeMed made the bid earlier this year, but UNC Health Care's board rejected the offered. WakeMed appealed to the state legislature, arguing the state-owned system was becoming an unfair competitor and failing to treat its share of uninsured patients, according to the report. Lawmakers had been working with both sides since late January to reach a resolution.
Under the deal, WakeMed withdrew its bid in return for greater cooperation between the hospitals. The two agreed to a five-year contract to train physicians and deliver care to the underserved, and UNC pledged $30 million for a psychiatric center, which is intended to reduce pressure on WakeMed's emergency department, according to the report.
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WakeMed made the bid earlier this year, but UNC Health Care's board rejected the offered. WakeMed appealed to the state legislature, arguing the state-owned system was becoming an unfair competitor and failing to treat its share of uninsured patients, according to the report. Lawmakers had been working with both sides since late January to reach a resolution.
Under the deal, WakeMed withdrew its bid in return for greater cooperation between the hospitals. The two agreed to a five-year contract to train physicians and deliver care to the underserved, and UNC pledged $30 million for a psychiatric center, which is intended to reduce pressure on WakeMed's emergency department, according to the report.
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