A Charlotte-based well being care system has finalized a deal to amass a nonprofit hospital group based mostly in Rome.
Floyd Medical Heart, a hospital in Cedartown and one in Alabama will now develop into a part of Atrium Well being below the long-delayed settlement, introduced Wednesday.
It’s the second large foray into Georgia for Atrium Well being, which in 2018 acquired the Navicent system in Macon. Atrium might now look to broaden additional within the state, specialists say.
The deal continues a latest flurry in Georgia of hospital system acquisitions, pending or finalized, involving massive organizations akin to Atlanta-based Piedmont, Tennessee-based HCA and Florida-based AdventHealth.
Considered one of these acquisitions can also be happening in Rome, with AdventHealth scheduled to amass the opposite massive hospital within the metropolis, Redmond Regional Medical Heart, from HCA.
The most recent deal comes shortly after President Biden ordered the Federal Commerce Fee and the Division of Justice to evaluate hospital mergers to make sure they don’t hurt high quality of care and lift costs.
The presidential order, introduced Friday, is the most recent instance of scrutiny from the federal authorities over mergers and acquisitions within the medical trade, Fierce Healthcare reported.
Hospital teams stated the order may add extra bureaucratic purple tape to mergers which can be already vetted by different authorities businesses.
“You will need to stress that hospital mergers and acquisitions bear an unlimited quantity of rigorous scrutiny from the federal antitrust businesses and state attorneys common,” stated Rick Pollack, president and CEO of the American Hospital Affiliation, in an announcement Friday.
The Biden order stated that lack of competitors in well being care can result in value will increase with out enhancing high quality of care.
Basis a part of deal
The Atrium deal features a pledge to speculate $650 million in capital for Floyd over the following decade “to boost capabilities, abilities and expertise, amenities and expertise.’’ It is going to result in the creation of a brand new Floyd-Polk Healthcare Basis, When totally funded, the inspiration is anticipated to complete greater than $150 million in property, and plans to deal with disparities in care within the area as a part of its mission.
Atrium Well being now has 40 hospitals and greater than 1,400 care areas throughout the Carolinas, Georgia and Alabama.
It is going to now function Floyd Medical Heart; Polk Medical Heart, a 25-bed vital entry hospital in Cedartown; and Cherokee Medical Heart, a 60-bed acute care hospital in Centre, Ala. Additionally included are a 53-bed behavioral well being heart in Rome, eight pressing care websites and greater than 20 major care places of work.
“This can be a historic milestone within the historical past of each of our organizations,” Eugene A. Woods, president and CEO of Atrium Well being, stated in an announcement. “We stay up for making important investments within the well being of the communities served by Floyd by way of working with the devoted management group and gifted medical group to implement the most recent technological developments, obtain one of the best scientific outcomes and broaden the breadth of companies we offer.”
Atrium Well being and the Floyd well being system introduced their intent to mix in November 2019, however officers stated the COVID-19 pandemic slowed the method. Remaining approval for the mix was given Monday by the Georgia Legal professional Basic’s Workplace.
“What impressed me from the primary assembly with Atrium Well being’s management is how alike we’re in our dedication to scientific excellence, service to the group and, particularly, a mission that embraces caring for all,” Kurt Stuenkel, the Floyd Medical CEO, stated in an announcement. “Being a part of Atrium Well being will enable us fast entry to one of the best minds and sources of a extremely regarded, rising, educational well being system that may assist guarantee high quality, accessible well being care is on the market in our group for many years to come back.”
Stuenkel will stay CEO of Floyd, and serve on the manager group of Atrium Well being, reporting to Woods. The Floyd amenities will retain their respective native governing boards, with Atrium Well being being allotted two seats on the Floyd Healthcare Administration Inc. board of administrators.
Floyd may also nominate a member to the Charlotte-Mecklenburg Hospital Authority board of commissioners, in addition to two members to governance committees for Atrium Well being.