Dive Brief:
- On May 21, Piedmont Healthcare and Georgia Newton Medical Center announced they were joining forces to form the Piedmont Newton Hospital.
- The deal is still subject to regulatory approval, but if it goes through, the new hospital will become a subsidiary of Piedmont. The deal is expected to close on Oct. 1.
- The relationship will involve a long‐term lease of assets from Newton County Hospital Authority.
Dive Insight:
Newton is currently in the process of expanding its emergency department and Piedmont is planning to continue the project. Piedmont will also assume responsibility for Newton's outstanding bond debt, which totals around $11.9 million.
Kevin Brown, president and CEO of Piedmont Healthcare told Healthcare Finance News that Piedmont is gaining a partner that will be able to provide for investment in clinical services and other capital expenditures. "All of this combined will make for a solid clinical facility for addressing the acute care needs of patients," he said.
As the Atlanta Business Chronicle notes, this partnership is yet another sign of the changing healthcare landscape in Georgia. In recent months, Emory Healthcare and WellStar Health System announced that they would merge. And in May, WellStar acquired West Georgia Health System. There's also been talk that Tenet Healthcare may sell off its five Georgia hospitals.