Atrium
Health, Wake Forest Baptist Health and Wake Forest University signed a
memorandum of understanding to merge, the North Carolina-based not-for-profit
organizations announced Wednesday.
The
memorandum kicks off a period of exclusive negotiations as the organizations
aim to reach a final agreement later this year.
The deal
would combine Charlotte-based Atrium's 42 hospitals and Winston-Salem-based
Wake Forest Baptist's seven. The health systems plan to expand Wake Forest
University's footprint with a second campus in Charlotte.
Executives
said they hope to tap into data for the some 6.8 million residents around their
respective networks to better coordinate care. They plan to build a research
and population health center in Winston-Salem, among other initiatives.
"Just
imagine the powerful possibilities to advance modern medicine by linking
breakthrough science directly with our patients in a way that significantly
enhances their cognitive and physical functioning—and allows them to live
independently for longer," Eugene Woods, president and CEO of Atrium
Health, said in prepared remarks.
Dr. Julie
Ann Freishlag, CEO of Wake Forest Baptist Health and dean of Wake Forest School
of Medicine, emphasized that the providers will make an impact through
patient-centered research, population analytics and a next-generation
curriculum.
Healthcare
executives claim that scale is necessary to boost access to capital, expand
service lines, and improve negotiating leverage with suppliers and payers.
Meanwhile, economists contend that mergers rarely yield the expected results and typically
increase prices.
Atrium
completed its merger with Macon, Ga.-based Navicent Health earlier this year. It
suspended merger talks with UNC Health Care in March 2018, following criticism
from state officials.
Story
developing...
https://www.modernhealthcare.com/finance/atrium-health-wake-forest-baptist-health-and-wake-forest-university-merge?utm_source=modern-healthcare-alert&utm_medium=email&utm_campaign=20190410&utm_content=hero-readmore
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