Restricted from increasing exterior of Mecklenburg County in North Carolina, Atrium is rising in Georgia, South Carolina and Alabama.
By Andy Miller
Georgia Well being Information
A Charlotte-based well being care system has finalized a deal to amass a nonprofit hospital group primarily based in Rome.
Floyd Medical Middle, a hospital in Cedartown and one in Alabama will now develop into a part of Atrium Well being underneath the long-delayed settlement, introduced Wednesday.
It’s the second massive 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 current flurry in Georgia of hospital system acquisitions, pending or finalized, involving giant organizations comparable to Atlanta-based Piedmont, Tennessee-based HCA and Florida-based AdventHealth.
Associated story: Atrium combines with Wake Forest Baptist and its medical faculty
Certainly one of these acquisitions can be happening in Rome, with AdventHealth scheduled to amass the opposite giant hospital within the metropolis, Redmond Regional Medical Middle, from HCA.
The newest deal comes shortly after President Joe 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 newest instance of scrutiny from the federal authorities over mergers and acquisitions within the medical business, Fierce Healthcare reported.
Hospital teams mentioned the order may add extra bureaucratic purple tape to mergers which might be already vetted by different authorities companies.
“It is very important stress that hospital mergers and acquisitions endure an infinite quantity of rigorous scrutiny from the federal antitrust companies and state attorneys normal,” mentioned Rick Pollack, president and CEO of the American Hospital Affiliation, in a press release Friday.
The Biden order mentioned that lack of competitors in well being care can result in worth will increase with out bettering high quality of care.
Basis a part of deal
The Atrium deal features a pledge to take a position $650 million in capital for Floyd over the subsequent decade “to reinforce capabilities, expertise and expertise, amenities and know-how.’’ It should result in the creation of a brand new Floyd-Polk Healthcare Basis, When absolutely funded, the inspiration is anticipated to whole greater than $150 million in belongings, and plans to handle 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 should now function Floyd Medical Middle; Polk Medical Middle, a 25-bed essential entry hospital in Cedartown; and Cherokee Medical Middle, 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 workplaces.
“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, mentioned in a press release. “We sit up for making vital investments within the well being of the communities served by Floyd by working with the devoted management staff and gifted medical neighborhood to implement the newest technological developments, obtain the perfect scientific outcomes and broaden the breadth of providers we offer.”
Atrium Well being and the Floyd well being system introduced their intent to mix in November 2019, however officers mentioned the COVID-19 pandemic slowed the method. Closing approval for the mixture was given Monday by the Georgia Legal professional Normal’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 neighborhood and, particularly, a mission that embraces caring for all,” Kurt Stuenkel, the Floyd Medical CEO, mentioned in a press release. “Being a part of Atrium Well being will permit us quick entry to the perfect minds and sources of a extremely regarded, rising, tutorial well being system that may assist guarantee high quality, accessible well being care is on the market in our neighborhood for many years to come back.”
Stuenkel will stay CEO of Floyd, and serve on the chief staff 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 can even nominate a member to the Charlotte-Mecklenburg Hospital Authority board of commissioners, in addition to two members to governance committees for Atrium Well being.