Atrium Health suspends plan to merge with UNC Health Care

CHARLOTTE, NC — Atrium Health - formerly Carolinas HealthCare System - says it is suspending plans to merge with UNC Health Care.

The deal first announced in August would have created one of the largest hospital systems in the United States.

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In a statement, Charlotte-based Atrium said it informed UNC of its decision by letter Friday morning citing an inability to reach an agreement.

"...while we have not been able to reach an agreement, our respect for UNC Health Care, its team and UNC Health Care's accomplishments has grown through this process. Their desire to work collaboratively to improve the health of every North Carolinian is something we highly value and to which we are also committed," the statement said in part.

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When they announced the plan, leaders with the companies said the merger would help boost affordability and access for patients while expanding services across the state. But, critics questioned that. In a statement after Friday's announcement, NC State Treasurer Dale Folwell said representatives of the two groups "declined to provide any performance guarantees that the combined entities would, in fact, be able to lower health care costs."

"I’ve consistently said that I am about ‘k-n-o-w,’ not ‘n-o.’ It’s now obvious that many others agreed there was a lack of transparency surrounding the proposed UNC/Atrium merger," said Folwell. "We never acquired enough information to ensure that the combination of these two health care entities would not have a negative impact on the taxpayers of North Carolina. I was also concerned that this proposal involving billions in state assets never came before the Council of State, whose primary function is to review the disposition of state property."

In its statement, Atrium said it's "priority will always be its patients and communities. We are committed to being an organization that is agile enough to respond to the quickly changing dynamics of our field, and also serve as an effective platform for growth that will attract other like-minded partners committed to the same goals to transform care together.  We will remain steadfast in our mission to improve health, elevate hope and advance healing – for all, and committed to ensuring the people of the Carolinas and beyond have access to world-class care."

Cox Media Group