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!
