Wellstar agrees to takeover of Augusta University hospitals

Georgia officers have accepted the takeover of the Augusta College hospitals related to the state’s solely public medical college.

The state Board of Regents on Friday accepted agreements to switch management of the hospitals to Marietta-based Wellstar Well being System, saying the deal could take impact in late summer time.

Augusta College President Brooks Keel stated in an internet press convention that Wellstar would take over because the controlling authorized entity of the well being system, which is able to now be often known as Wellstar MCG Well being. The precise particulars of the switch, first introduced in December, remained unclear. Neither facet instantly supplied a duplicate of the related contracts.

The partnership, introduced in December, has turn out to be a political soccer in latest months as a result of Wellstar earlier closed Atlanta Medical Heart and Atlanta Medical Heart South in East Level, and since Wellstar opposed a push by Lt. Gov. Burt Jones to permit hospitals to be in-built rural counties with out getting a required state allow.

However Gov. Brian Kemp and College System Chancellor Sonny Perdue pushed laborious to conclude the deal, pushed by issues over the monetary struggles of the Augusta College Well being System, which runs the 478-bed Augusta College Medical Heart and the 154-bed Kids’s Hospital of Georgia, each in Augusta.

“There is not any doubt in my thoughts that this new partnership is a win for our state, and a win for numerous households throughout our state,” Kemp stated Friday in an internet information convention.

The Augusta College Well being System additionally has regulatory approval to construct a 100-bed hospital in Grovetown, within the rising Columbia County suburbs of Augusta. The system additionally runs the Georgia Most cancers Heart in Augusta, and Roosevelt Heat Springs Rehabilitation and Specialty Hospitals in Heat Springs and owns doctor practices.

Wellstar runs 9 hospitals in suburban Atlanta, principally concentrated within the northwest suburbs. It stated it has pledged to speculate practically $800 million in AUHS amenities, together with greater than $200 million for the principle Augusta College Medical Heart, plus constructing the brand new hospital in Columbia County and related amenities.

Wellstar additionally stated that it might spend further cash on the implementation of a brand new medical data system that the state is spending $105 million on. Jones derided that cash as a “giveaway” to Wellstar.

The transfer is one among many hospital mergers in Georgia and nationwide, as standalone hospitals mix into massive programs. That helps them afford large investments but in addition offers them the market energy to barter extra profitable cost agreements with insurers.

Atlanta-based Piedmont Healthcare took over a three-hospital system primarily based in Augusta final yr, pledging to speculate greater than $1 billion in upgrades and expansions over the subsequent 10 years. That nonprofit group was named College Hospital, though it wasn’t managed by Augusta College.

Within the 2021 funds yr, AU Well being Programs misplaced $28 million on $1.06 billion in income — which is the latest yr for which a state audit is accessible. Income included $30 million in state appropriations. The system has misplaced $63 million general since 2017, audits present. AU Well being Programs has been in search of a accomplice since 2019.

The 2 sides stated in December that the deal may additionally lead to an extra growth of the Medical Faculty of Georgia by creating a brand new regional campus at Wellstar Kennestone Hospital in Marietta. No specifics of that potential growth had been talked about Friday, though Wellstar CEO Candace Saunders and others talked about growth typically.

“This partnership will prepare extra physicians at Medical Faculty of Georgia to assist tackle a big scarcity of clinicians in our state,” Saunders stated. “These physicians will be taught on the MCG, lots of them will prepare at WellStar.”

The state and Wellstar once more touted alternatives to make use of telemedicine to increase medical care and scientific educating to rural elements of the state. How that will work is unclear.

Keel stated that Augusta College sought within the course of to “be certain that our workers are going to be protected to the easiest that we probably can. Wellstar has made that dedication.”

Perdue stated the agreements can be filed subsequent week with Georgia Legal professional Basic Chris Carr for evaluation, topic to a potential public listening to. The Federal Commerce Fee additionally critiques hospital mergers.