The planned partnership between Piedmont Healthcare and Henry Medical Center got a step closer this week when the Federal Trade Commission approved the deal.
The federal review, which involves both the FTC and the U.S. Department of Justice, is required on larger mergers and acquisitions to make sure the deal does not harm consumers by stifling competition.
"We were pleased with the news from the FTC, completing one additional and essential step on our partnership journey with Henry Medical Center," Piedmont CEO R. Timothy Stack said in a news release.
Piedmont and Henry Medical are still negotiating the final terms of their agreement. But the partnership is expected to involve a long-term lease of Henry's 215-bed hospital in Stockbridge that would allow the facility to become part of the Piedmont network.
The partnership will give Piedmont a dominant position on Atlanta's Southside. The Piedmont system already includes hospitals in Fayetteville and Newnan, in addition to its flagship hospital in Buckhead and Piedmont Mountainside in Jasper.
While the parties must finalize the terms of their deal, the plan must also win approval from the state Attorney General's Office.
The plans to expand Piedmont Healthcare are coming while the system is also experiencing some financial strain. A rising number of uninsured patients and changes in the health care system prompted Piedmont in June to cut 464 jobs in an effort to save an estimated $68 million.
Nina Day, a Piedmont spokeswoman, said the partnership with Henry Medical, which has been losing money, was not a factor in the Piedmont job cuts. The deal positions Piedmont for a strong future, she said. "It’s a long-term success story," she said.
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