Two of the Triangle's most influential employers face leadership changes
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Photo: Courtesy of Duke Health
Both Duke Health and UNC Health, two of the Triangle's largest employers with huge influence over the region, are facing leadership changes at a pivotal moment.
Why it matters: The change comes as the two health systems navigate uncertainty over the ramifications of Medicaid cuts as well as whether the state budget will provide funding for the North Carolina Children's Hospital, which the two systems will run in a rare partnership.
Driving the news: Last week, Duke Health CEO Craig Albanese announced he was stepping down after two years leading the health system to take a job as president of Kaiser Permanente, a prestigious post in the health care world.
- And earlier this year, UNC Health's CEO Wesley Burks announced he would step down after serving in the role since 2018. Cristy Page, president of UNC Health Enterprises, is currently UNC Health's interim CEO.
Zoom out: The Triangle is hardly alone when it comes to leadership change. Currently, 13 major health systems nationwide are looking for new leaders, according to Becker's Hospital Review.
- That could make the hunt for new leadership locally even more competitive.
State of play: Both UNC Health and Duke Health say they are still committed to the partnership at the children's hospital forged by Burks and Albanese, and Burks has stepped into a role at UNC that will focus fully on the hospital.
- But it remains to be seen what sort of money will ultimately go toward the hospital. The Senate and House remain at odds over how much to fund the project, which could cost more than $3 billion.
What they're saying: "We are optimistic that the General Assembly sees NC Children's as an important investment in the health of North Carolina's children, and as a significant economic engine for the state," UNC Health spokesperson Alan Wolf said in a statement.
- And Duke University's President Vincent Price said in a letter to the university this week that he has "full confidence that the DUHS leadership team will continue to advance excellence in its missions during this transition."
Zoom in: The two health systems could also be affected by large federal cuts to Medicaid by the federal government, especially if it causes the state's Medicaid expansion to be rolled back.
- "I think that all health systems are worried about Medicaid cuts generally, but systems like UNC and Duke that are in states that might be more likely to roll back Medicaid, they're probably more worried," Don Taylor, a health policy scholar at Duke's Sanford School of Public Policy, told Axios.
- Taylor estimates those cuts could cost Duke $250 million per year in reduced Medicaid payments if they happen.
Duke Health, in particular, has been affected significantly by federal actions this year. The school is one of the biggest recipients of NIH research funding, which looks likely to decline.
- Duke Health is also currently being investigated by the federal government for its diversity initiatives, leading to $108 million in frozen federal funding. Duke has not commented on the investigation.