NC treasurer ‘profoundly concerned’ by county’s approval of hospital merger

Less than 24 hours after the Wake County Board of Commissioners voted to advance plans to consolidate WakeMed and Atrium Health, North Carolina Treasurer Brad Briner says he is “profoundly concerned” that the deal is proceeding.

Briner dismissed claims by merger supporters that Atrium’s latest offer was an improvement.

“Nothing has fundamentally changed from the original proposal, and basic market principles have not changed either,” said Briner in a video statement. “Hospital consolidation leads to less competition and higher prices.”

WakeMed is the largest health system in Wake County and has served as a taxpayer-funded community hospital for 65 years. WakeMed leaders say the consolidation with Atrium’s healthcare system will lead to $2 billion in much-needed hospital improvements as the county continues to grow.

But Briner, who oversees the State Health Plan, said Tuesday that the deal, which still requires federal approval, makes it even harder to keep the state’s and other employers’ plans solvent.

“I was asked to co-chair the governor’s healthcare affordability commission. This decision makes it even harder for that effort to be successful,” said Briner.

Gov. Josh Stein announced Sunday that he would not stand in the way of the WakeMed-Atrium merger after negotiating several concessions that were not included in the original deal floated in May.

‘A lot less bad’: Wake commissioners approve updated deal to combine WakeMed and Atrium

Notably, Stein said Atrium agreed not to increase prices at WakeMed more than 1.5 times the annual increase in Medicare costs for the next five years. And the giant healthcare system agreed to substantially increase the amount of indigent care WakeMed would provide, with a $150 million community benefit fund for Wake County as an additional sweetener.

Briner joined Stein in inviting state Attorney General Jeff Jackson to conduct a thorough, independent assessment, focusing on the effect on prices, competition and access.

“I’m hopeful that federal regulators will step in to consider how cross-market mergers like this one harm competition,” said Briner.

Rep. Erin Paré (R-Wake) joined Briner in criticizing the deal. Paré warned on social media the merger was “surely going to raise your healthcare costs.”

Republican Rep. Mike Schietzelt, who represents northern Wake County, also echoed that sentiment on Facebook: “Five members of the Wake County Board of Commissioners just voted to make your health care more expensive in Wake County.”

Wake County Commissioners Chair Donald Mial said he was convinced the transaction would make WakeMed stronger in the face of growing demands, including 24,000 new people moving into the county each year.

Mial said it’s easy for critics to second-guess what the commissioners should or shouldn’t do to achieve a better deal.

“As the chair of this board, the buck stops with me – good or bad,” said Mial during the board’s Monday evening session.

But Briner said the people of Wake County and the taxpayers of North Carolina deserve better.

“It’s not too late to back away,” Briner said.