Georgia hospital systems plan merger

Emory Healthcare is poised to grow.

Emory Healthcare, based in Atlanta, is looking to acquire Houston Healthcare to expand its footprint in Georgia.

The Georgia academic health system has reached a letter of intent to merge with Houston Healthcare, a system based in Warner Robins, Ga. If the deal comes together, Houston Healthcare would become a part of Emory Healthcare.

The organizations say they hope to close the deal in 2025. Regulators must sign off on the transaction.

Emory operates 11 hospitals across the Atlanta metropolitan area and throughout Georgia. The system also manages a joint venture with St. Francis–Emory Healthcare in Columbus, and boasts six regional affiliate hospitals.

Houston Healthcare operates two hospital campuses with a total of 282 beds, in addition to five outpatient facilities and nine physician practices. Houston’s home base in Warner Robins is about 100 miles from Atlanta.

Joon S. Lee, MD, CEO of Emory Healthcare, said the deal would offer more access to services beyond Atlanta.

“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,” Lee said in a statement. “Both Emory and Houston Healthcare are committed to providing exceptional care and enhanced access to those who need our services and expertise.”

Joon S. Lee, MD, CEO of Emory Healthcare, left, and Charles G. Briscoe, president and CEO of Houston Healthcare, say they're looking forward to merging the systems.

Charles G. Briscoe, president and CEO of Houston Healthcare, said the organization is enthusiastic about joining with Emory.

“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,” Briscoe said in a statement.

Houston Healthcare has served central Georgia since 1960. The organization has 2,500 employees, including 200 doctors, and serves 300,000 patients each year.

Ivan Allen, chairmman of Houston Healthcare System, Inc., said the system sees better prospects in its effort to serve the region by joining Emory.

“Looking toward the future, the Boards of Directors and leadership determined that joining a larger, high-performing hospital was a necessary next step to continue Houston Healthcare’s legacy of quality care while increasing operating efficiencies and growth,” Allen said in a statement.

Emory recently announced it plans to close Emory Smyrna Hospital in December. Emory said the system had planned to renovate the facility, but the COVID-19 pandemic impeded the work. Smyrna Hospital has not been operating at full capacity and primarily provided outpatient radiology services. Emory ultimately decided that it couldn’t proceed with the renovations “despite a decade of hard work and good intentions,” the system said.

With the planned closure of Smyrna, Emory is shifting orthopaedic surgery at Emory University Orthopaedics & Spine Hospital in Tucker, and that facility has been expanded to handle more patients, the system said.

Georgia has seen its share of changes in the hospital market in recent years. Piedmont Healthcare acquired University Health Care and its three hospitals in northern Georgia in 2022. A year earlier, Piedmont acquired four Georgia hospitals from HCA Healthcare.

Hospital analysts say they expect to see more mergers and acquisitions in the near future, especially with some smaller providers looking to join larger systems to survive. Analysts also note that academic health systems have been forming more mergers and partnerships with community hospitals.

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