Emory Healthcare has signed a letter of intent to join forces with Houston Healthcare, a health system in Houston County anchored by a major hospital in Warner Robins, according to a news release Thursday.
The Houston system serves more than 300,000 patients each year, according to the announcement, in a Middle Georgia area that includes a federal Air Force base. It has an additional hospital in Perry, five outpatient facilities, nine doctor practices and several “Med-Stop” clinics, altogether employing 2,500 employees.
The CEOs of the two hospital systems touted the benefits of such a deal.
Neither Emory nor Houston would elaborate on the nature of the partnership the two systems are considering. Asked about the financial terms of a potential deal and what changes to the facilities might be included, spokeswoman for Emory Healthcare, Janet Christenbury, said Emory had no additional details to provide.
“We are excited about the potential of this new relationship with Houston Healthcare, as it will expand our ability to provide high-quality care and services to communities beyond Atlanta, while broadening our geographic footprint in Georgia,” said Dr. Joon S. Lee, MD, CEO of Emory Healthcare. “Both Emory and Houston Healthcare are committed to providing exceptional care and enhanced access to those who need our services and expertise.”
“Houston Healthcare has served its community well for more than 60 years, and we look forward to continuing and strengthening our high-quality, patient-focused service and care through this new affiliation with Emory Healthcare,” says Charles G. Briscoe, FACHE, president and CEO of Houston Healthcare. “We are enthusiastic about the future.”
Another result would be making Emory Healthcare a crucial player in the Georgia Senate district of Sen. Larry Walker III, R-Perry. Perry is a city inside Houston County, which is located along I-75, south of Macon.
Walker chairs the Senate Insurance and Labor Committee and is able to vote on the Senate Health and Human Services Committee as an ex-officio member. Big battles affecting hospitals’ financial survival, both big urban hospitals and small rural ones, appear frequently in the Legislature and in Walker’s committees.
“It’s outstanding, exciting news,” Walker said. Houston Healthcare has spent years searching for a deal and a previous one was scuttled by regulatory issues, he said, but that only seems like a blessing now. “I mean, Emory’s the premier health care provider in the state, and to partner with them will only strengthen our health care system for Middle Georgia and create more opportunities.” Walker himself and his family members have received care both and the local Houston facilities and then when something complex and serious comes up, at Emory University Hospital, he said.
Emory Healthcare is a major academic hospital system based at Emory University in Atlanta. Both systems are not-for-profit, but hospitals these days must often compete like businesses to survive. Consolidation is a major trend in U.S. health systems, with big systems looking for other hospitals to acquire, especially ones in advantageous areas.
Emory Healthcare currently has 11 hospitals and nearly 24,000 employees, along with 2,796 licensed patients beds system-wide. It also has six regional affiliate hospitals and runs a joint venture with St. Francis-Emory Healthcare in Columbus.
Studies have shown that in general, consolidation is followed by higher prices. Metro Atlanta’s hospitals have all been acquired by major systems, except Grady Memorial Hospital, which partners with Emory and Morehouse medical schools.
The letter of intent signed so far is non-binding. Now the two will enter a due diligence process to work out the details. Assuming there are no major sticking points, the two health systems expect to sign the final agreement in 2025, according to the announcement, as long as they get state and federal regulatory approval.
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