WakeMed is seeking to combine with Atrium Health

WakeMed is seeking to combine with Atrium Health

WakeMed Health, a nonprofit hospital that has served the Raleigh area since 1961, is moving to combine with Atrium Health, the state's largest hospital system, they said in a joint release Friday.

Why it matters: WakeMed is the third-largest healthcare provider in the Triangle, giving Atrium a large foothold here, if the combination is approved by regulators.

  • Atrium, which has a significant presence in Charlotte and the Triad, is part of the nonprofit healthcare company Advocate Health.

    • Between the lines: There has been a lot of consolidation within the healthcare system and many are feeling the pressure to expand their footprint. UNC Health and Duke Health have also sought to expand their presence across the state.

  • Already some state officials are calling for scrutiny of the potential merger. State Treasurer Brad Briner said Friday he hoped the attorney general's office and the Federal Trade Commission would look closely at the deal between WakeMed and Atrium.
  • "There is a simple business principle that when suppliers consolidate and competition is reduced it is the consumers who suffer," Briner said in a statement. "This has been proven to be true time and again in the health care landscape, where prices continue to rise and patients are left with mounting medical debt."

    • Driving the news: The Wake County Board of Commissioners is meeting Monday to give its approval to the merger.

  • The county owned the hospital network until 1997 when it became a nonprofit.

    • Zoom in: As part of the combination, Atrium Health is expected to invest $2 billion into WakeMed, which has three hospitals in Wake County.

  • Some of that money will go toward expanding its flagship campus on New Bern Avenue in Raleigh and an expansion of its hospitals in Cary and north Raleigh.
  • It will also further enhance its Garner campus, which is under development.
  • The merger is anticipated to create 3,300 new jobs, according to the hospitals.

    • Flashback: Atrium previously tried to merge with UNC Health, but it ultimately called off that deal in 2018 after failing to reach a final deal.

    What they're saying: "For more than 65 years, WakeMed has been a beacon of hope and healing for the Wake County area and beyond," WakeMed CEO Donald Gintzig said in a statement. "This combination represents a significant next step in building upon this legacy, expanding our impact and ensuring a thriving nonprofit health care future for all we serve."