Georgia hospital systems take key step toward merger

Several months after announcing the exploration of a merger, Emory Healthcare and Houston Healthcare say they have taken a big step toward coming together.

Emory Healthcare and Houston Healthcare say they have reached a definitive agreement on a merger. If regulators approve the transaction, Emory will acquire Houston Healthcare.

Emory and Houston both announced this week that the board of their respective systems have reached a definitive agreement on a merger. Regulators still must sign off on the transaction, and that process could take several months, the systems said.

Assuming regulators sign off on the transaction, Emory would acquire Houston, a health system based in Warner Robins, Ga. Emory and Houston first announced their merger discussions in August 2024.

Houston Healthcare operates two hospital campuses with a total of 282 beds, along with five outpatient facilities and nine physician practices.

Joon S. Lee, MD, CEO of Emory Healthcare, said in a statement that he’s pleased that “we are one step closer to bringing Houston Healthcare into the Emory Healthcare family.”

“This relationship will help expand our efforts to provide high-quality health care and expertise into Central Georgia, as both Houston and Emory work to strengthen the care possibilities for patients throughout the community,” Lee said.

Charles G. Briscoe, president and CEO of Houston Healthcare, said the merger would enable the system to provide more services in the region.

“Houston Healthcare remains committed to serving its community with expanded care options and services through the new affiliation with Emory Healthcare,” Briscoe said in a statement. “For more than 60 years, Houston has been dedicated to excellence in health care and continues this mission moving forward.”

Warner Robins, a city of about 84,000, is about 100 miles south of Atlanta.

Emory Healthcare, based in Atlanta, is an academic hospital system that operates 10 hospitals with a total of 2,811 beds. The system also provides services across Georgia in a joint venture at St. Francis–Emory Healthcare in Columbus, which has two campuses, and six regional affiliate hospitals.

Industry analysts expect to see more hospital mergers in 2025, for a host of reasons. Some analysts say that they expect President Trump’s administration to reduce regulations, which could lead to more hospital deals.

Academic medical centers have been pursuing more acquisitions over the past couple of years, including UCSF Health and the University of Alabama at Birmingham Health System. Anu Singh, managing director at Kaufman Hall, told Chief Healthcare Executive® in a January interview that he expects more academic health systems to pursue mergers and acquisitions.

“The ones that are taking a proactive approach, I think they're the ones that are looking at what we either need to diversify our base of operation, expand areas which we're touching the community in terms of both geography and services,” Singh said. “And ultimately, what they're basically saying is we have a vision for the future of this academic medical center that is beyond what its traditional base has been.”

More hospitals and health systems are looking at mergers and partnerships due to financial considerations, with some organizations facing financial challenges seeking partners to remain viable. Many hospital mergers over the past two years were driven by organizations in distress.