Merger oversight out, but whistleblower protections and CEO pay caps remain in NC hospital bill ...Middle East

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Merger oversight out, but whistleblower protections and CEO pay caps remain in NC hospital bill

The North Carolina Legislative Building (Photo: Galen Bacharier/NC Newsline)

The NC Senate Healthcare Committee endorsed a hospital regulations bill on Thursday after removing a section that could have affected the Atrium Health/WakeMed merger.

    Sen. Jim Burgin (R-Harnett), the bill’s sponsor, told reporters that he didn’t want legislation to interfere with the Atrium/WakeMed merger, which is already in progress. 

    “I don’t want us to put a finger on it one way or another,” Burgin said. But there would have been more discussion and public information about the hospitals’ agreement if a law requiring pre-merger review was already in place, he said. 

    The public learned of the merger just a few days before Wake County Commissioners were scheduled to vote last month to change WakeMed’s articles of incorporation, which would have essentially approved the merger. 

    WakeMed sought the merger, which hospital leaders said would strengthen WakeMed’s finances. But commissioners delayed the vote following an outcry from state officials, who warned the merger would drive up healthcare costs. 

    WakeMed touts benefits of Atrium deal after weekend backlash

    Higher costs remain a concern for Burgin. 

    “When large systems acquire smaller providers, it often results in higher prices without necessarily improving access or outcomes,” Burgin told the committee. 

    What’s left in the bill are whistleblower protections for hospital healthcare staff, restrictions on non-compete contract clauses, and caps on nonprofit hospital CEO pay.

    Sen. Julie Mayfield (R-Buncombe) said the whistleblower protections and the non-compete restrictions stem from problems at Mission Hospital in Asheville after for-profit HCA Healthcare bought it in 2019.

    Mayfield called the purchase a “disaster,” evidenced by the “immediate jeopardy” health and safety citations imposed by the U.S. Centers for Medicare & Medicaid Services.

    The hospital has received this most serious citation four times in the last five years, and twice in the last eight months after patient deaths, she said. 

    Employees at Mission were fired, Mayfield said, after speaking openly with state and federal surveyors, or after indicating they would share recommendations for improving care with the public. “It is unconscionable that providers are not free to raise quality of care concerns internally and externally, and these provisions can address that,” she said. 

    Non-compete contract clauses forced healthcare providers to leave western North Carolina to continue to work in their fields, Mayfield said.

    In an email, Mission Hospital spokesperson Nancy Lindell said,” We respectfully disagree with that characterization. Mission Hospital is committed to providing high-quality care for the patients and communities we serve, and that commitment is reflected in both our investments and our outcomes.”

    She included a list of accomplishments that included opening a $5 million clinical simulation and training center to support nurses and caregivers, expanding nursing education partnerships and cancer care capacity, investing in advanced technology, and continuing improvements to facilities and patient care services across the region.

    “Mission Hospital offers numerous avenues for employees to identify issues and share feedback, including anonymous reporting options, employee engagement groups, patient care councils, and established processes for submitting and tracking operational and patient care concerns,” Lindell’s email said. “We not only encourage team members to raise concerns, we expect it. Our focus remains on supporting our workforce and delivering safe, high-quality care to the communities we serve.”

    Senate Bill 987 would also cap not-for-profit hospital CEO annual salaries, bonuses and other compensation at 400% of the wage of the lowest-paid full-time employee. 

    “I have a problem with the CEOs making as much as some of the CEOs make,” Burgin told reporters. 

    Burgin said he hoped to move the bill through the Senate as quickly as possible, and then start working to have the state House consider it before the end of session.

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