WRAL Investigates: WakeMed eyes $919 million expansion as Atrium deal faces uncertain future
Via WRAL. See Original Story Here
WakeMed unveiled major expansion plans as the health system waits to learn the fate of its proposed merger with Atrium Health. Records obtained by WRAL Investigates show WakeMed filed four separate applications with the North Carolina Department of Health and Human Services for projects totaling more than $919 million in new investments.
Among the proposals, WakeMed is eyeing new hospitals in Rolesville and Wendell. If approved, the facilities could add up to 90 hospital beds in Wake County.
WakeMed also asked for state approval to expand its Raleigh and Cary hospital campuses. Those projects could add another 143 beds.
The health system is seeking to grow as its highly scrutinized merger with Atrium Health remains stalled. The two health care companies announced plans to join forces in May. Wake County commissioners paused the deal shortly afterward, following a wave of pushback from residents and state and local leaders.
WRAL Investigates sent WakeMed a series of questions about the expansion plans, including:
Will WakeMed be able to move forward with this project if the company doesn't get money anticipated from the Atrium deal?
Why did hospital system leadership feel now was a good time to propose these expansions, given the uncertainty surrounding the Atrium deal?
What would these plans mean for health care in Wake County if projects get approved? What if they don’t?
"The strategic combination is designed to leverage the complementary strengths of both health systems to enhance access, quality and long-term sustainability of care while strengthening competition in Wake County," a WakeMed spokesperson said in an email statement. "Together, the organizations intend to accelerate strategic investments in infrastructure, expand innovative programs that improve access to care across North Carolina, deepen community partnerships, and advance population health outcomes. While the combination would accelerate the implementation and delivery of the proposed capital and strategic initiatives, WakeMed remains fully capable of executing each project independently, as proposed."
WakeMed took the same position in its applications filed with NCDHHS, writing that its plans are not dependent on funding tied to the proposed agreement with Atrium Health.
Concerns among leaders about deal
Many people across Wake County have raised concerns about what the deal could mean for health care. State and local leaders have pushed back against the agreement, arguing it could drive up prices for patients.
Atrium has pointed to research it says shows hospital mergers can reduce operating expenses. The company also cited outcomes from other Advocate Health combinations, including improvements in hospital mortality and chronic disease management.
Under the deal, Atrium Health would assume the leading role in the nonprofit entity that operates WakeMed. In return, Atrium has promised to invest at least $2 billion in WakeMed’s expansion plans throughout the county. The deal would allow Atrium to enter the fast-growing Triangle market and compete with other health systems such as UNC Health and Duke Health.
Gov. Josh Stein's office sent a letter to WakeMed leadership earlier this month about the deal.
“North Carolinians rely on high-quality, affordable health care,” Stein’s office said in the letter. “WakeMed has long provided access to such care in Wake County. WakeMed’s recently announced proposed combination with Atrium Health will therefore have a significant effect on health care in Wake County and beyond. Accordingly, the proposed combination deserves close scrutiny and careful consideration.”
A spokesperson for Stein said Friday that WakeMed had acknowledged receipt of the letter but had not yet responded in writing to the questions it raised. The spokesperson said the system is “currently working to address the governor's questions about this important combination and its impact on the long-term health of WakeMed and our community.”
Wake County commissioners, who must sign off on the deal, have yet to set a date for a formal vote. Several community meetings have been held in recent months to gather feedback. Commissioners also met with WakeMed leadership to question officials directly about the potential impacts of the proposed merger.
Via WRAL. See Original Story Here
