The consolidation of metro Atlanta's hospital market continued Friday with Henry Medical Center's announcement of a partnership with Piedmont Healthcare.
Piedmont and Emory Healthcare were competing for a deal with the financially-ailing hospital in Stockbridge. Piedmont won based on its community hospital focus, as well as its record of improving quality, patient satisfaction and financial standing among other factors, according to a statement released by Henry Medical Center.
“It was a difficult decision, considering the excellent credentials both candidates presented," said Jeff Mills, vice chairman of Henry Medical's board of directors. "I am confident that the process we used to evaluate the candidates and make our decision was thorough, analytical, and based on what we believe to be in the best interests of Henry Medical Center and our community.”
The partnership with Henry Medical 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.
Details of the partnership aren't final. But the deal calls for the Hospital Authority of Henry County to lease the 215-bed hospital's assets to Henry Medical Center, which would become a subsidiary of Piedmont Healthcare. Piedmont would take control of hospital operations and become the guarantor of bonds sold to expand the hospital. It would also cover the cost of caring for indigent patients, currently paid for through a 1 mil property tax levy.
The partnership is one in a series of deals resulting from changes in the health care marketplace that will eventually push most Atlanta hospitals to become part of a multi-facility health system. Atlanta's St. Joseph's Hospital announced a partnership with Emory Healthcare in March.
Friday's announcement came as Piedmont acknowledged that it was undergoing a systemwide review to reduce costs -- a result of cuts in reimbursements, new state taxes and a struggling economy, trends that are squeezing all hospitals. Everything from staffing to supplies will be examined, the hospital said.
The deal was a disappointment for Emory, which aggressively sought a deal with Henry Medical.
"We will continue to pursue all appropriate affiliation and partnership models to ensure that the residents of Henry County and neighboring communities maintain access to the unique and high-quality patient care delivered by Emory," Emory Healthcare said in a statement.
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