A UNC board of governors member raised questions about the legality of UNC Health Care's proposed merger with Charlotte, N.C.-based Carolinas HealthCare System, The News & Observer reports.
Here are five things to know about the proposed deal and the concerns raised.
1. Carolinas HealthCare System signed a letter of intent to merge with UNC Health Care in August 2017, potentially forming one of the nation's largest hospital chains. Together, the two entities would run more than 50 hospitals and employ 90,000-plus people. The new system would have more negotiating power with insurance companies and more capital to eventually construct new hospitals, according to the Charlotte Observer.
2. The UNC board of governors member raising questions is Tom Fetzer, who lobbies for Blue Cross and Blue Shield of North Carolina and UNC Health Care competitor Raleigh, N.C.-based WakeMed. In an email sent last Thursday to members of UNC's board of governors, Mr. Fetzer alleged UNC Health Care conducted secret discussions about the proposed partnership with Carolinas HealthCare for "the better part of a year" without telling the board.
3. Under state law, UNC Health Care must notify UNC's board of governors about important policy changes, according to the report.
4. In response to Mr. Fetzer's claims, the board's leaders advised Mr. Fetzer to remove himself from the matter due to his potential conflict of interest as a lobbyist for BCBS of NC, The News & Observer reports.
5. The board of governors, which acknowledged Mr. Fetzer had previously recused himself from the board's actions on the merger, will next ask the State Ethics Commission for guidance on Mr. Fetzer's conflict of interest, according to the report.