WakeMed Submits Offer to Purchase Rex Healthcare

RALEIGH, N.C. (May 12, 2011) -WakeMed Health & Hospitals today submitted an official offer to purchase Rex Healthcare (Rex) from the UNC system. The offer, which has been under development by WakeMed for several months, was authorized by a unanimous vote of the WakeMed Board of Directors on May 3, 2011. An offer letter from Board Chair Billie Redmond and President & CEO Bill Atkinson was submitted today to the President of The University of North Carolina Thomas Ross, offering $750 million toward the purchase of Rex Healthcare.

There are numerous reasons for making this offer to purchase. First and foremost, health care consumers in the Triangle area would strongly benefit from this arrangement. The combination of the two systems would offer significant benefits to patients, physicians, taxpayers, the community-at-large and the State of North Carolina.

By eliminating duplication of services and combining the complementary strengths of both organizations, this purchase would allow patients to benefit from better continuity of care through a local integrated system, better access to care and a broader range of services.

Additionally, if Rex is purchased for $750 million, the state of North Carolina and the UNC Health Care system would realize a significant percent return on investment. This influx of cash will significantly, positively impact the state, and in return the university system and UNC Health Care.

Redmond and Atkinson explained in the letter delivered to President Ross that WakeMed and UNC Hospitals have a long history of working together for better healthcare in North Carolina. They continued, "We strongly believe that the movement of Rex to the WakeMed system will greatly facilitate WakeMed's mission of service to the citizens of our area while also decreasing costs and providing efficiencies that would further support UNC's mission of providing academic-based patient care, research and teaching."

In addition, WakeMed continues to welcome collaboration between it and UNC in the areas of academic research and improving the quality of care and WakeMed would continue to provide access to residents and UNC physicians within a combined WakeMed, Rex system.

About WakeMed Health & Hospitals
WakeMed Health & Hospitals is a private, not-for-profit health care organization based in Raleigh, N.C. The 870-bed system comprises a network of health care facilities throughout Wake and Johnston Counties. Centers of excellence include cardiac and vascular care, women's and children's services, physical rehab, emergency and trauma, orthopedics, neurosciences, home care and numerous wellness and community outreach programs. WakeMed's team of 7,700 employees, 1,000 volunteers, more than 1,000 affiliated physicians, and 150 physicians employed by WakeMed Physician Practices serve the residents of North Carolina using the most advanced technologies to ensure the finest in health care. For more information, visit www.wakemed.org.