WellStar Board Gives Final Approval to Purchase Five Hospitals

Dec 01, 2015, 15:15 ET from WellStar Health System

MARIETTA, Ga., Dec. 1, 2015 /PRNewswire/ -- WellStar Health System has signed a definitive agreement to purchase Dallas, Texas-based Tenet Healthcare's five metro Atlanta hospitals. The WellStar Board of Trustees approved the strategic move following the conclusion of the due diligence period. WellStar will expand upon its proven clinical care models and patient safety programs that have resulted in increased quality and improved access to healthcare to new communities.

With ever-changing government regulations and reimbursement pressures, health systems are looking for new efficiencies that will lead to higher quality, improved access to healthcare and lower cost.

"Through our compassionate and skilled caregivers, WellStar serves the healthcare needs of a diverse, growing population," said Candice Saunders, president & CEO of WellStar Health System. "These strategic moves are a continuation of our mission to improve the health and well-being of our communities. WellStar will be better suited to address changes in the healthcare industry."

WellStar will acquire North Fulton Hospital, Spalding Regional Hospital, Sylvan Grove Hospital, Atlanta Medical Center and its South Campus, as well as Tenet's complimentary physician practices in Atlanta.  In all, the Tenet facilities include 1,192 licensed hospital beds supported by approximately 4,300 team members and a medical staff of 1,390 physicians and advanced practice professionals. In addition to the $575 million acquisition, WellStar will assume $86 million in debt related to the lease of North Fulton Hospital. 

"Since we began exploring the sale of our Atlanta facilities, we sought an operator with the leadership and capability to continue delivering high-quality care for many years to come," said Keith Pitts, vice chairman of Tenet Healthcare. "We have a deep respect for WellStar's commitment to the Atlanta community and its people. We are pleased our people and operations are joining a network with a shared vision to continuously improve healthcare and invest in its system's growth."

Following the purchase, the Tenet facilities will become not-for-profit entities within WellStar. 

Earlier in November, West Georgia Health's (WGH) Board of Trustees in LaGrange, Ga. voted to join WellStar. As a leading not-for-profit, WGH will join WellStar in the same way that WellStar's existing hospitals came together more than 20 years ago. 

West Georgia Health operates West Georgia Medical Center, a 276-bed hospital in LaGrange, as well as two long-term care facilities, hospice and home care, among other services. WGH employs 50 physicians and more than 1,300 team members.

As a result of these changes, WellStar will employ approximately 20,000 team members across 11 hospital campuses, more than 200 medical office locations and numerous outpatient facilities.  The purchase of the Tenet facilities will be submitted to the Federal Trade Commission for review.  The WGH and WellStar partnership requires the approval of the Georgia Attorney General following a public hearing process. 

"We anticipate a smooth regulatory review process and look forward to continuing the high level of care that is available in these communities," said Saunders.

About WellStar Health System

WellStar Health System is the largest community not-for-profit health system in Georgia and serves a population of more than 1.4 million residents in five counties. The vision of WellStar is to deliver world-class healthcare. A national leader in the transformation of healthcare delivery, WellStar launched the Center for Health Transformation and has partnered with the Georgia Tech Research Institute leading to far-reaching effects on healthcare both locally and nationally. WellStar is regularly listed as a top employer nationally—most recently on the FORTUNE 100 Best Companies to Work For list. WellStar includes WellStar Kennestone Regional Medical Center (anchored by WellStar Kennestone Hospital) and WellStar Cobb, Douglas, Paulding and Windy Hill hospitals; WellStar Medical Group; Urgent Care Centers; Health Parks; Pediatric Center; Health Place; Homecare; Hospice; Atherton Place; Paulding Nursing and Rehabilitation Center; and the WellStar Foundation. For more information, call 770-956-STAR or visit wellstar.org.

 

SOURCE WellStar Health System



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