UNC Health Care System Board of Directors declines WakeMed proposal

The University of North Carolina Health Care System Board of Directors today voted unanimously to decline WakeMed’s proposal to purchase Rex Healthcare. WakeMed leadership was notified of the decision today.

Friday, Aug. 26, 2011

CHAPEL HILL, N.C. – The University of North Carolina Health Care System Board of Directors today voted unanimously to decline WakeMed’s proposal to purchase Rex Healthcare. WakeMed leadership was notified of the decision today.

“After a thorough review, the Board has concluded that WakeMed’s proposal, if accepted, would harm the quality of North Carolina’s patient care, increase cost to patients in the Wake County region and compromise the financial stability of UNC Health Care and the UNC School of Medicine, increasing the system’s reliance on state appropriation,” said UNC Health Care Board of Directors Chair Richard Krasno. “Any value derived from a one-time cash infusion from a sale, however distributed, would be overwhelmed by the diminished capabilities of UNC Health Care. Without Rex, UNC Health Care’s ability to meet its statutory medical mission would be reduced and its beneficial impact on the state irreparably harmed.

“At the same time, our partnership with WakeMed provides value to the state, Wake County and both institutions,” Krasno said. “We hope to continue to build on the benefits of our partnership with WakeMed. Additional collaboration on issues such as pediatric care, mental health, hospitalist and expanded resident training, meeting the needs of the underserved and clinical data integration are promising avenues for us to explore.”

On May 12, 2011, WakeMed submitted a proposal to purchase Rex Healthcare from UNC Health Care. Krasno later appointed a Special Committee of the Board to review the proposal. That Committee met several times to conduct a thorough review of the proposal. Earlier today, the Special Committee recommended to the full Board that it decline the proposal.

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