UNC's top executive issued an official response this afternoon rejecting WakeMed's unsolicited offer to buy rival Rex Healthcare for $750 million.
The UNC Health Care System bought Rex in 2000 for $290 million, and is using the Raleigh-based hospital system to expand its operations in Wake County
Here is the prepared statement from UNC President Tom Ross:
"Today I received a letter from the CEO and the board chair of WakeMed proposing to purchase Rex Healthcare and all its assets from the UNC Health Care System for $750 million.
The letter offers few specifics and leaves many unanswered questions.
UNC Health Care and the UNC School of Medicine have a three-part mission: providing high-quality medical care to citizens from all over North Carolina, regardless of their ability to pay; conducting cutting-edge research that improves patient treatment and care; and educating the next generation of physicians.
Carrying out those core responsibilities in today’s complex world requires that we have strong partnerships with a wide range of schools, hospitals, researchers, physicians, and patients.
That is why Rex and Chatham Hospital joined the UNC Health Care System, why we are expanding our medical school training in Charlotte and Asheville, and why we have a network of cancer researchers and clinicians throughout the state.
In this uncertain health care environment, it is critically important that we maintain a long-term vision for the UNC Health Care System that extends beyond the current budget crisis.
I do not believe that divesting UNC Health Care of Rex in order to generate one-time revenue for the state is in the long-term best interests of the people of North Carolina, and it would damage our ability to fully carry out our mission.
The Executive Committee of the UNC Health Care Board of Directors met in closed session today to discuss the WakeMed proposal, and a regular meeting of the full board is scheduled for Monday.
Given its fiduciary responsibility to the people of North Carolina, the UNC Health Care board will consider the offer carefully and conduct extensive due diligence."
Assistant Business Editor Alan M. Wolf joined the N&O in 1999 covering the business of health care. He became an editor in 2001, and helps oversee the paper's daily business coverage and Sunday Work&Money section. He lives in Clayton with his wife and two children. Reach him at 919-829-4572 or
Comments
Big Verbose Bill
Thu, 05/12/2011 - 22:57 — boo1950Be careful this man is dangerous. As someone close to what has been going on at Wakemed it is correct in thinking this is mostly ego driven. Atkinson is scrambling to try to recover from not being able to buy up several key physician groups. These doctors partnered with Rex because they wanted to save their independence and basically not work for Atkinson. Now he is trying to use some type of pull in the legislature to try to save face. Yep Big Bill is all lawyered up and he has lobbyists coming out of his backside. Sure would have saved a lot of money if he just would partner with UNC and Rex then pull this crazy ego driven maneuver. Once agin thanks to Bill as usual the lawyers get richer and the patients suffer. BC/BS needs to get their goat in on this one.
No he didn't!
Thu, 05/12/2011 - 22:37 — CitizenDid you read Ross' statement?
"The Executive Committee of the UNC Health Care Board of Directors met in closed session today to discuss the WakeMed proposal, and a regular meeting of the full board is scheduled for Monday.
Given its fiduciary responsibility to the people of North Carolina, the UNC Health Care board will consider the offer carefully and conduct extensive due diligence."
He plainly says that the UNC Health Care Board will consider the offer. To write that he rejected the offer is flat-out misleading. Get it right, N&O!
The only reason WakeMed is
Thu, 05/12/2011 - 18:20 — bendalThe only reason WakeMed is making this move right now is because the GOP controls the legislature. They admitted this on the evening news tonight; they believe that the GOP-led legislature will jump at the chance to shrink state government by getting rid of a state run hospital, and the $750 million is just icing on the cake.
If the GOP does approve this sale, what's next? Selling off Umsted Park to someone who'll charge fees? Maybe they could put in some luxury homes in strategic areas. How about selling off the city's museums? Nothing wrong with the "Burger King Natural History Museum", is there?
Don't laugh; once they get the idea that state assets can be sold, there's no limit on what they'll stop at.
Rex versus Wake Med... Help me understand this...
Thu, 05/12/2011 - 17:57 — plusafPlease help me understand why Wake Med, reportedly losing money, staff and patients, would make a hostile takeover bid for the non-money-losing, apparently more successful Rex business?
My wife volunteers at Rex and tells me that very often patients who've come to Rex after dealing with Wake Med often mention how much more cheerful and helpful the Rex staff people are, amongst many other positive comments about Rex.
I've been to Rex as a patient a few times and have noticed, myself, how the staff is with clients. Can we hear more from folks who've tried both medical care suppliers? Will the N&O, WRAL or any other media outlets shine some more light on this?
When I hear that Wake Med is making a 3/4-billion-dollar hostile takeover of a more successful, popular competitor, I really have to scratch my head and wonder what part of this story are we not hearing?
It seems that Wake Med might benefit from a partnership or even reverse takeover by Rex! So, whose palms are being greased by this plan or whose political fortunes will be enriched by this move or whose jobs will be made more secure (when maybe they should be more at risk) by this maneuver?
Please, help me!