Revised terms would cap WakeMed price increases for five years, raise minimum indigent care and require Atrium to fully fund $2 billion in capital projects.
RALEIGH — Gov. Josh Stein said Sunday he no longer opposes the proposed combination of Atrium Health and WakeMed after the health systems revised the deal to address concerns about prices, charity care and the source of funding for planned capital improvements.
Stein said Atrium agreed to cap price increases at WakeMed at no more than 1.5 times the annual increase in Medicare costs for five years. The governor had requested that limit as part of his review of the proposed transaction.
“Health care costs are too high,” Stein said in a statement. He added that broader health care reform remains necessary and said he intends to work with the General Assembly on measures aimed at lowering costs.
The revised commitments also call for Atrium to fully fund a proposed $2 billion investment in WakeMed capital projects. Stein previously raised concerns about where that money would come from.
Atrium further agreed to increase WakeMed’s annual minimum indigent care from 4.8% to 8% of total adjusted revenue, according to the governor’s office. The health system also committed to establish a $150 million fund intended to benefit the community.
Stein’s announcement followed a Sept. 17 letter in which he asked Atrium and WakeMed to revise the transaction. The health systems responded Sept. 19, and the governor announced his position the following day.
“Because Atrium has addressed a number of concerns about the deal’s impact on North Carolinians, I do not oppose the combination,” Stein said.
The governor’s statement does not itself approve or complete the transaction. It establishes that Stein will not oppose the combination after the new commitments. The release also does not provide a closing date or describe every remaining review or approval required for the deal.
The proposed combination carries statewide policy significance because of its potential effect on hospital prices, access to charity care and investment in health facilities. The revised terms put measurable conditions around three issues raised by the governor, including a five-year price formula and specified minimum commitments for capital investment and indigent care.
Editor’s note: This article was drafted with the assistance of artificial intelligence and was reviewed and fact-checked by a member of the NC Political News editorial team before publication.