WakeMed Health and Hospitals sent a letter to UNC-system President Thomas Ross today offering to purchase Rex Healthcare, a subsidiary of UNC Hospitals.
The letter proposes an offer of $750 million for Rex and its assets, which include WakeMed’s cross-town rival Rex Hospital in Raleigh.
WakeMed and UNC Hospitals have butted heads in the past concerning charity care expenses. After UNC Hospitals reported it would lose $300 million from uncompensated care last year, WakeMed submitted a formal request for financial information and other public records in November.
WakeMed — a private, not-for-profit health care organization — previously accused UNC Hospitals of using state resources to engage in “predatory behavior” and partner with profitable private physicians’ practices across the state.
But William Atkinson, president and CEO of WakeMed, said in the letter that WakeMed’s acquisition of state-funded Rex could benefit the state at a time when the legislature has proposed double-digit cuts to the UNC system.
“This influx of cash will significantly, positively impact the state, and in return the university system and UNC Health Care,” he said.
The sale of Rex faces opposition from Dale Jenkins, chairman of Rex Healthcare.
Jenkins said in a press conference today that Rex benefits from a “vibrant” partnership with UNC Hospitals, and its sale would send the wrong message to the state.
“Rex is not for sale and has not been for sale,” he said.
