Newsletter 2/26: Legislators say it's time to re-examine hospital laws

Plus: Remembering former Charlotte Mayor Pro Tem Lynn Wheeler; Charlotte Ballet's 'Dancing with the Stars'; Rodent problems hit CLT restaurants; John Edwards affair started with 'You're so hot!'

Feb 26, 2024

Today's Charlotte Ledger is sponsored by T.R. Lawing Realty:

In response to a Charlotte Ledger/N.C. Health News article on Atrium Health’s status as a government entity, 3 key N.C. legislators say hospital authority rules might be outdated

By Michelle Crouch
Co-published with N.C. Health News

Three North Carolina legislators said they are interested in revisiting the state law that gives special privileges to hospital authorities such as Atrium Health, noting that today’s multi-billion-dollar hospital systems are nothing like the ones lawmakers had in mind when the law was written.

The hospital authorities act was written in 1943, “when a lot of county-owned hospitals were struggling to keep their doors open,” said N.C. Rep. Donny Lambeth (R-Winston-Salem), a former hospital administrator who is a co-chair of the House Health Committee in the state legislature

“It’s different today when they’re making billions.”

Rep. Larry Potts (R-Lexington) and Sen. Jim Burgin (R-Angier) told The Ledger/NC Health News that they, too, have concerns related to the law. Potts is senior chairman of the House’s health committee, and Burgin is a co-chair of the Senate’s health care committee.

The lawmakers’ call for a review comes after a Charlotte Ledger/NC Health News article this month examined the benefits Atrium enjoys as a unit of local government called a “hospital authority.”

Those benefits include the power of eminent domain, which means the hospital can force property owners to sell to make way for hospital expansion; extra tax breaks, even on property that is not being used for medical purposes; and protection from certain federal regulations, including antitrust damages.

Those advantages have helped Atrium grow into a powerful, multi-state hospital chain whose executives receive millions in compensation. With about 39,000 workers, Atrium is the largest corporate employer in the Charlotte region, and the hospital system tied to the authority reported $9.3 billion in annual revenue in 2023. And the company has an additional $19 billion in revenue under its combinations with Wake Forest Baptist and Advocate Aurora Health.

Lambeth said he wants to consider whether the hospital authority law gives Atrium “such an advantage that we need to either enforce or change the law.”

Burgin said he would like to have “some very candid, frank, adult conversations” about the law, asking, “Do these (laws) make sense? And is it right and fair? Because I think some of it is not fair.”

Potts pointed out that much has changed in the 75 years since the original hospital authority act was written. “We need their services and their benefits,” he said. “We also need to look at the costs of what those benefits are.”

The lawmakers also expressed disappointment that Atrium receives those benefits but doesn’t operate in the same open and transparent manner as other government entities.

Atrium: We are fulfilling the original intent of the law

Asked to respond to lawmaker concerns, an Atrium spokesman emailed a statement that said the Charlotte-Mecklenburg Hospital Authority, which does business as Atrium Health, “will continue to operate and abide by the law.”

It also said:

Atrium Health continues to fulfill the original intent of the North Carolina Hospital Authorities Act — to “protect the public health, safety, and welfare, including that of low income persons” … With deep roots in every community we are privileged to serve, we proudly embrace our “for all” approach that ensures no patient needing care is turned away because of their ability or inability to pay for their care.

The statement said Atrium provided $2.8 billion in free care and other community benefits in its larger service area in 2022.

Lambeth: ‘They can’t have it both ways’

Atrium has emphasized in court filings that as a governmental unit, it “must comply with North Carolina’s public records and open meetings laws.” However, it doesn’t interpret the public records and open meetings laws in the same way as other government boards.

For example, the authority doesn’t release the agenda for its board meetings in advance or set aside time for the public to speak. It also closes its committee meetings to the public, even though that is where most deliberation happens.

For comparison, CarolinaEast, a hospital authority in Craven County, N.C., does allow the public to attend committee meetings and speak to its board.

“They can’t have it both ways, quite frankly,” Lambeth said of Atrium. “I don’t think you can take advantage in one arena but not another. Either act like a government entity or act like a not-for-profit system.”

All three lawmakers said they think Atrium’s board should follow the state’s open meetings laws in the same way as other appointed and elected government boards. That means conducting deliberations in the public eye, Burgin said.

“If they’re going to be a quasi-governmental agency, they’ve got to play by those rules,” Burgin said. “If they don't want to, then they need to be some other entity. They may have to make a choice — you can do it this way or you can do it that way, but you can’t do it both ways.”

The legislators said they have heard complaints for years that Atrium and other public hospitals have an unfair advantage over the state’s private hospitals. In particular, critics say, lower levels of federal antitrust scrutiny have made it easier for Atrium to merge and combine with other hospitals, allowing them to demand higher reimbursement rates from insurance companies.

What could the legislature do?

The three Republican legislators are influential members of committees that control health care legislation coming out of Raleigh. Republicans hold a supermajority in the House and Senate, and Republican support is essential to pass laws out of the General Assembly.

The General Assembly could consider a number of changes to the law. It could eliminate the hospital authority act altogether, forcing Atrium to convert to a private nonprofit corporation like Novant Health. It could clarify that hospital authority boards must follow the same rules as other public bodies, such as allowing the public to speak and attend committee meetings. Or it could take away some of an authority’s powers, such as the ability to condemn land for hospital expansion or the ability to avoid property taxes on real estate that is not being used for medical purposes.

Legislative actions in recent years have largely leaned toward giving hospital systems more authority and control, not less, said Barak Richman, a Duke University law professor who studies health care financing.

In fact, the most recent proposed change to the hospital authority law was a little-noticed sentence in the 2023 Senate budget bill that didn’t make it into the final state budget.

It would have eliminated the part of the statute that prevents hospital authorities from expanding much past their county borders. Lifting the restriction would have allowed Atrium to start exercising its hospital authority powers outside the Charlotte region and across the state.

Michelle Crouch covers health care. Reach her at mcrouch@northcarolinahealthnews.org.

This article is part of a partnership between The Ledger and North Carolina Health News to produce original health care reporting focused on the Charlotte area. We make these articles available free to all. For more information, or to support this effort with a tax-free gift, click here.

Related Ledger/NC Health News articles:

“Atrium Health is a ‘unit of local government’ like no other” (Feb. 5)
“3 county commissioners check out Atrium’s board meeting” (Feb. 7)

Today’s supporting sponsor is the event venue at McColl Center. McColl Center is the unique and artistic venue where your company's event, celebration, or social gathering becomes a masterpiece. Schedule a tour and learn more.

Lynn Wheeler, who passed away this weekend, served 14 years on the Charlotte City Council. She enjoyed spending time with political and business figures, including former Charlotte Hornets owner George Shinn (upper right) and attorney Bill Diehl (lower right). (Photos from Wheeler’s website.)

by Ken Garfield

Lynn Wheeler, who died from pancreatic cancer Saturday at age 80, was an outgoing, colorful presence in a town whose public life can run a drab gray.

Wheeler served 14 years on the Charlotte City Council from 1989 to 2003 and was chosen as mayor pro tem. She was part of more political and civic boards than people have fingers and toes, including the city’s Economic Development Committee. Poignantly, given the cause of her death, she was honored years ago for her support of the American Cancer Society.

News articles Sunday on her passing noted that she helped push through construction of the taxpayer-supported Spectrum Center uptown (it opened in 2005) after voters rejected it in a referendum. But those who knew Wheeler from back in the day appreciate her for more than any one vote.

Former Charlotte Mayor Richard Vinroot, a fellow Republican who was mayor from 1991-1995 and served alongside Wheeler, described her on Sunday as a gadfly and a feisty personality. He meant both descriptions as compliments.

She was a maverick, he said. “She went places other Republicans wouldn’t go,” Vinroot said. But she did it out of a love of public service, he noted.

Wheeler, a native of Richmond, Va., also never met a reporter she didn’t like. Said Vinroot: “She liked being quoted and being taken seriously.”

She was a master at schmoozing the press. The Fourth Estate got very few “no comments” from her. She hosted movers and shakers (and reporters) for dinner at her Myers Park home. WSOC-TV news reporter Joe Bruno posted on X (formerly Twitter) Sunday that hanging in Wheeler’s home were all of former Observer political cartoonist Kevin Siers’ works that featured her. One such cartoon depicted her with a broad smile and referred to her as “Wheeler the Dealer.”

“Lynn loved the City of Charlotte and all of its mess,” Bruno wrote. For a time, she was a political analyst for WBTV.

Google Wheeler’s name, and you’ll come across her website, “Word on the Street,” promising “Charlotte’s political and business scuttlebutt with Lynn Wheeler.” It features the “Latest Charlotte Scoop.” Alas, the scoop was from years ago.

But front and center were photos of Wheeler posing with such Charlotte giants of yesteryear as Charlotte Hornets founder George Shinn and the late celebrity attorney Bill Diehl. Wheeler is smiling broadly in each photograph, as if this is where she was born to be, rubbing shoulders with power and influence, savoring every second.

Ken Garfield is a freelance writer/editor and frequent contributor to The Ledger’s Ways of Life newsletter. Reach him at garfieldken3129@gmail.com.

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Tributes pour in

Current and former political and civic figures from across Charlotte reflected on Wheeler’s life in news articles and social media on Sunday.

Former longtime Charlotte Mayor Pat McCrory, in the Charlotte Business Journal:

“She helped get Charlotte to where it is today,” McCrory added.
Of their time together on council and, later, with McCrory as mayor, he said that marathon council meetings in their pre-texting era benefited from exchanging humorous notes to relieve the tedium and tension of lengthy debate.
“She would make me laugh out loud,” McCrory said.

Former state legislator Joel Ford, in the Charlotte Observer:

“She could talk to Republicans and Democrats,” said former state legislator Joel Ford, a Democrat. “She could talk to CEOs and she could talk to sanitation workers. She was that kind of person and she treated everyone the same. She had a kind heart and a big heart.”

Former Charlotte-Mecklenburg Board of Education chair Elyse Dashew, on Facebook:

Dedicating tonight’s glorious sunset to Lynn Murphy Wheeler. She was so kind to me when I was starting out in politics. She will be missed by many, regardless of political party.

Charlotte City Council member LaWana Mayfield, on X/Twitter:

Last night, I lost an amazing friend. [Lynn Wheeler] became family over our decade-long friendship. I love you now & forever. Now you have no more pain & will soar in Heaven.

Former county commissioner Jim Puckett, on Facebook:

RIP Lynn Wheeler. We agreed and disagreed, but we’re always friends.

Former Mayor Pro Tem Julie Eiselt, on Facebook:

Lynn was a true public servant. Whether you agreed with her or not, she put herself in the line of fire on critical decisions that mattered to the community. She served boldly in an era when city leaders worked across the aisle in the best interest of Charlotte’s future. May she rest in peace, and may her family and friends find comfort in knowing that her time on this earth was well-spent in the service of others.

Getting ready to dance with the stars

Corporate and community leaders from across Charlotte are getting ready for Charlotte Ballet's 11th annual Dancing with the Stars of Charlotte Gala on March 2, which pairs them up with professional ballet dancers in a fundraising competition. In the past 10 years, the event has raised more than $10M, with $4.5 M benefitting local charitable organizations. Here, Callie Dobbins, a senior vice president for Atrium Health Levine Children’s, practices with Charlotte Ballet dancer Maurice Mouzon Jr. The money raised by the pair will benefit Atrium Health Levine Children’s. (Photo courtesy of Charlotte Ballet)

You might be interested in these Charlotte events

Events submitted by readers to The Ledger’s events board:

TUESDAY: The Plaza Midwood Social District Pre-Launch Event, 5:30-7 p.m., Dish, 1220 Thomas Ave. Join The Charlotte Ledger, the Plaza Midwood Merchants Association and CLT Public Relations for an exclusive preview event offering an inside look at how Charlotte’s first social district will work and what it means for local businesses and the public. Food, drinks and official social district reusable steel cup. $60. Registration required.

THURSDAY: Charity Bourbon Tasting. 7-9 p.m., The Long Room, 1111 Central Ave. Join The Charlotte Ledger at a night out benefiting N.C. Health News, which allows us to bring in-depth, quality healthcare journalism to our region. Cost: $65 per person, or $120 per couple in advance. (No tickets at the door).

THURSDAY: Indie on Wheels: My Soul Speaks, 6-8 p.m., Sugaw Creek Recreation Center. Join The Independent Picture House and Sugaw Creek Recreation Center for the free screening of the documentary “My Soul Speaks.” This program is sponsored by Culture Blocks—a community partnership funded by Mecklenburg County. Free.

◼️ Check out the full Ledger events board.

➡️ List your event on the Ledger events board.

In brief:

Last week of early voting: Early voting in the March 5 primary election continues from 8 a.m. to 7:30 p.m. today through Friday and 8 a.m. to 3 p.m. on Saturday at 22 locations in Mecklenburg County. The Ledger’s Election Hub will tell you what you need to know to make an informed choice.
Rodent troubles at CLT restaurants: Mecklenburg’s Health Department shut the 1897 Market restaurant at the airport for two days last week because of rodents, and it said there was slight rodent activity found at two others, Great American Bagel and Brookwood Farms. (WSOC)
Rise in gambling addiction expected: Public health officials say they expect problem gambling to increase when legalized sports betting takes effect in North Carolina on March 11. (N.C. Health News)
Edwards affair started with ‘You’re so hot’: In a candid new interview with CNN that aired on Sunday, Rielle Hunter, who carried on an infamous affair with former Sen. John Edwards that ended his presidential aspirations, recounted the moment she first bumped into Edwards. She said it was in 2006 at a New York hotel bar and that her first words to him were, “You’re so hot!” and that Edwards replied, “Why, thank you” and soon invited her up to his hotel room. (People)

Taking stock

Unless you are a day trader, checking your stocks daily is unhealthy. So how about weekly? How local stocks of note fared last week (through Friday’s close), and year to date:

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