Wake Commissioners Back WakeMed's Combination With Atrium Health

The Wake County Board of Commissioners voted 5-2 on Monday to approve a deal that would bring WakeMed, Wake County's nonprofit hospital system, together with Charlotte-based Atrium Health.

Commissioners Vickie Adamson and Tara Waters voted no. The vote followed a public hearing that ran about five hours and was briefly interrupted by protesters, whom deputies escorted out. The board approved changes to WakeMed's articles of incorporation and a transfer agreement.

Terms Added Before the Vote

The decision came after weeks of pressure over earlier terms. State Treasurer Brad Briner, State Auditor Dave Boliek and Governor Josh Stein had all questioned the deal, citing research linking hospital consolidation to higher prices. The commissioners had delayed an earlier vote in May.

Stein's office pushed for a stronger offer, and Atrium revised it. Under the updated terms:

• Price increases would be capped at 1.5 times the annual increase in Medicare costs for five years.
• Atrium's minimum charity-care commitment would rise from 4.8 percent to 8 percent of adjusted revenues.
• Atrium would create a $150 million fund, which the county could deploy to nonprofits working on health outcomes.
• Atrium has pledged $2 billion in hospital improvements.

Stein said the revised offer was enough for him not to oppose the deal moving forward.

Not the Final Step

The county vote does not complete the transaction. Earlier coverage said the deal still faces review by the state attorney general and the Federal Trade Commission, and the attorney general's office had said it planned to review the proposal carefully. Critics maintain that consolidation will raise costs over time and reduce charity care.

Sources: WUNC; NC Newsline; ABC11; Axios Raleigh.