The SAFE CU "Enterprise" Merger - "Beam Me Up, Boeing?"

     Star Trek?

One last round on how our local WakeMed sellout [link] seems to parallel the SAFE/Boeing mega-merger murk and muck. 

Here in Raleigh much of the concern about the hospital merger was over the lost of local control, local focus, and local accountability. After all, Wake Med was created by - and has been funded by - the citizens of Wake County to provide access to affordable healthcare, particularly to those of modest means.

The WakeMed Board seemed chronically concerned that the hospital wasn't "up to snuff" financially, because it was earning less than folks like its acquirer Atrium Health. Y'know, WakeMed just wasn't profitable enough and all that - despite extremely strong financials! 

✅  Why isn't WakeMed "up to snuff"...  

 "42% OF ALL PATIENTS SEEN IN OUR EMERGENCY DEPARTMENTS ARE EITHER MEDICAID OR UNINSURED PATIENT, RESULTING IN WAKEMED PROVIDING CARE OF AN ESTIMATED 70.2% OF WAKE COUNTY'S UNINSURED AND MEDICAID PATIENTS." [from their fin reports!]

✔  ... because WakeMed is fulfilling its mission! 

Atrium Health, the acquirer, has put itself forward as a local North Carolina peer of WakeMed - common purpose, common vision - headquartered down in Charlotte. 

In fact, Atrium is part of Advocate Health, Inc. which operates 69 hospitals with 174,000 employees, with "a combined footprint across eight states – Alabama, Georgia, Illinois, Indiana, Michigan, North Carolina, South Carolina and Wisconsin – and maintain a strong organizational presence in Chicago and Milwaukee." So much for down home local!  

😎 Have mentioned that Atrium was forced by the public outcry to amend the merger agreement [link transfer agreement], paying an additional $2+ billion in benefits and funding to Wake County. As you can read in the agreement, Atrium finally acknowledges who it really is:

"Atrium Health is now a part of the Advocate Health, Inc. enterprise, a nationally prominent, multi-state healthcare system (the “Enterprise”). "

✔  "Hey, beam me up Scottie"! And, lets hope "the Enterprise" can get those unprofitable billings moving up for poor folks in Wake County.

  Sacramento are you listening? "If so, please hang up and dial 911... "

The SAFE CU Merger: A Sacramento Sellout? The WakeMed Analogy...

  The vote was 5-2 to sell out!

Wake County "let the deal go down" yesterday and soon WakeMed will be no more. The meeting ran for 5 hours [link], but in the end... the local community folks lost out. The Board Chairman Don Mial summed it up this way:

"I believe that this action will make WakeMed stronger in the face of growing demands, workforce pressures, rising costs, and the real headwinds facing healthcare today,"

That forecast of the problems with healthcare sounds pretty accurate - no argument there! Precisely the same arguments are being made across all industries to justify mergers and consolidation.

The debate, however, is not over whether the future is uncertain - it always is, always has been. The important question is whether these problems are better solved by a locally-owned, locally-controlled institution or a multi-state, growth driven conglomerate. Same applies to credit unions - the SAFE/Boeing "merger-me-me" is our poster child.

✔ Important to note that having community/political leaders step up and pan the original WakeMed proposal did make a difference. That pressure led to a $2 billion investment giveback, a capping of future rates, and a $150 million indigent care fund.  $2 billion+ is still real money in North Carolina!

✔ Here's how an honest, competent public servant - State Auditor Dave Boliek - steps up for the public good [a news release issued]:    

"I am committed to promoting accountability and trust in all levels of North Carolina government. The rollout of the proposed hospital takeover raises questions. The lack of transparency does not instill confidence, in fact, it calls for greater scrutiny and explanation.  At this point in time, it’s highly doubtful that the average Wake County citizen is even aware of the pending takeover."

✔ Hope alarm bells are ringing loudly in Sacramento!

That the SAFE Board has also struck a poor deal on behalf of its members is self-apparent, easily documented [link].  Most folks predict that a majority of all SAFE members will not approve the SAFE Board's giveaway to Boeing of the credit union .

✅ That means that the California state regulator - DFPI - will have final approval authority on the sell out.  Sacramento community/political leaders should call for a pause for further review.  It will be well worth $$$ their time!

  California DFPI should not "let this deal go down" - rubber-stamped!