WakeMed Makes $750M Bid for Rex Healthcare
More specifically, Atkinson and Redmond said in their letter that the deal would benefit healthcare consumers and improve access in the Triangle area around Raleigh, because a combined system would cut duplicate services and coordinate complementary strengths of both systems.
"WakeMed has about $500 million in cash…and Rex makes the most sense at this point to gain a leg up on market share from competitors," Reiboldt said.
WakeMed said the $750 million offer represents "a significant percent return on investment" for UNC Health Care, the university system, and the state of North Carolina, which purchased Rex 11 years ago.
"WakeMed has proudly served the community for 50 years, and the system is currently in a very strong financial position with a healthy operating margin and significant cash reserves at a time when the state of North Carolina has a significant fiscal crisis affecting the state's university system and, as a result, UNC Health Care," the letter to Ross said.
"As consolidation is becoming more common, the traditional anti-trust regulations preventing not-for-profit hospitals from controlling too much share in a particular market is posing a major challenge that has already prevented deals from closing," Reiboldt said. He suggests anti-trust concerns may be weighing on the minds of the UNC board.
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