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UNC Health Care to consider WakeMed's bid for Rex

Posted June 20, 2011

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— The UNC Health Care System announced Monday night that it has created a special committee to consider WakeMed Health & Hospitals' proposal to buy cross-town rival Rex Healthcare in Raleigh.

In an email, a spokesman for UNC Health Care wrote that "while we continue to believe that it is not in the best interest of the citizens of the state or Wake County to divest the Health Care System's interest in Rex, we must act in accordance with our fiduciary responsibility to consider WakeMed's proposal."
 
The committee is expected to review the proposal over the next several weeks and then make a recommendation to the UNC system's board of directors.
 
In May, WakeMed offered to buy Rex Healthcare from UNC for $750 million. The UNC system has run Rex since it merged with UNC Health Care in 2000.
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  • airunc Jun 22, 2011

    Thank you! Now consider the TBJ's report back in '09, "WakeMed & Duke Health System could confront the prying eyes of federal tax collectors who are pledging to crack down on excessive pay at nonprofit ...hospitals. WakeMed CEO Bill Atkinson has a compensation package worth $1.67 million, while Duke's CEO is $1.53 million. That puts the two in the TOP TIER among nearly 500 hospitals nationwide, according to an IRS survey, the average for top hospital executives is $490,000 but that executives at 20 hospitals with the highest compensations made an average of $1.4 million. Excessive C-level salaries at nonprofit hospitals have gotten the attention of the IRS."
    Facts to consider....

  • gkgreene Jun 21, 2011

    Lets see - Wake Med has $750 million available to buy Rex and everyone blames insurance companies for rising health care costs???????

  • caa2cat1601 Jun 21, 2011

    Rex takes less Medicaid patients because of geography. WakeMed is located in a more urban, poor area. Rex is not! Rex turns NO ONE away! Get your facts straight. You've been listening to Atkinson to much!!

  • Bronco Jun 21, 2011

    For those that do not like going to Wake Med West-formally known as REX..PLEASE come to DURHAM..we have top notch medical facilities..cause you know what kind of service you are going to get IF..REX goes to WAKE MED's control

  • airunc Jun 21, 2011

    Okay- Some facts would help here. Both are "Not-for Profit". Both take Medicare. Neither can deny emergency care as conditions of their Medicare Participation. WakeMed has to sever United Healthcare for similar situations just as the issues that resulted in Rex and Aetna. Although these hospitals are not-for-profit, funds must be generated to cover the cost of care for the patients that they cover, both insured and uninsured. The level of unisured that presents to that hospital are often based on LOCATION of the facility -and not selective marketing or covert inclusion or exclusion of patients. Healthcare Consumers Beware - Competition is a blessing in healthcare- otherwise you get one standard of care- and not of your choosing. Consumers really have little inside knowledge of the protected safety and quality operations of a hospital.... This is all about money, profit margins and controlling the area market. Nothing in that says Consumer and Quality of Care?.... Sounds about

  • ajfuddermukker Jun 21, 2011

    I remember when UNC bought Rex. They said nothing would change. Six months later,at least 200 of were looking for a job because ours were eliminated. UNC tried to monopolize healthcare in the trianle, now it's Wakemed's turn.

  • dgods8 Jun 21, 2011

    It is bigger than just care thats the point here you are definitley right cwood3 I have seen all of these departments as an observer in all the larger hospitals and just about every hospital from here to the coast and you are right on the money about those specialties.

  • sarabear Jun 21, 2011

    ncguy-

    It's true that Medicaid pays a tiny fraction of what procedures actually cost. Aetna was trying to do the same. It wasn't UNC/REX who decided not to contract, it was Aetna who decided they wanted to be cheap and not pay for services. Yes, Aetna pays more than Medicaid (or did) but Medicaid is a government program and Aetna is not, therefore it is only right that they should pay at a higher rate just like the other commercial insurance companies do.

  • cwood3 Jun 21, 2011

    I am amazed that none of you understand what this is all about!!! It's not about UNC-CH!! It's about money-assets.

    Is WakeMed trying to get Rex for a song-yes? What this is about is when gov't budgets get tight, you eventually spin off assets! WakeMed buying Rex spins in $750M
    in the State treasury-not to UNC's. That $750M helps pay lots of teachers-even if it's short term-one or 2 years.

    Holly Springs is a whole nother ball game. Several groups have proposed a 50 bed unit in HS-including the group that owns several hospitals in the Triad. Nobody-WakeMed, Duke, or Rex want another player in the RTP area.

    Concering the 2 hospitals, both have fans! I would not consider Rex if I had heart issues! WakeMed is hands down better for heart. If I had cancer, Rex is hands down better.
    Babies-you can do all or any of them. Hope your baby's ok-cause if they're not-babies with big issues get taken to Wake!

    See, this is bigger than just care!! Let's see how it plays out!

  • NCMacMan Jun 21, 2011

    @ambergail1:
    Wakemed does take medicaid. they take in ten times more medicaid than Rex, even though they only have three times as many beds (if Rex was doing their fair share, it would be around three times as much, not ten). Wakemed also isn't the county hospital anymore, they are private not for profit. If Wakemed takes so much of the poor and Rex is owned by the state, why doesn't Rex do more care for the poor?

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