Atrium Health to partner with Navicent Health
- Atrium Health signed a letter of intent on Thursday to partner with Navicent Health into its system.
- The proposed deal will expand Atrium’s service reach into Georgia, where Navicent is based, and open the possibility for further expansion. Navicent, which operates in central and south Georgia, will become part of Atrium, gaining access to capital and a broader patient base.
- Atrium is also attempting to merge with UNC Health Care.
Atrium is looking to build out its system.
The organization rebranded itself from Carolinas HealthCare System a day before the deal was announced. The name change aligns with its wider geographic focus and doesn’t tie it to a particular U.S. region, the company said.
Atrium currently operates nearly 40 hospitals and affiliated medical facilities in North and South Carolina.
Discussions about an Atrium-UNC merger are moving forward. If the deal goes through, it will give Atrium access to clinical, education and research resources at North Carolina’s top-ranked academic medical center.
Healthcare is abuzz with mergers and acquisitions. Recent proposed couplings include Advocate Healthcare and Aurora Health and Ascension and Providence St. Joseph Health. If the latter is completed, it will create the largest hospital operator in the U.S. with 191 hospitals in 27 states.
The frenzy will likely continue as hospitals and health systems struggle to adjust to reimbursement cuts, smaller patient volumes and a system of care that increasingly guides patients to outpatient settings. Merging can help to shore up financials and provide more clout when negotiating rates with payers and suppliers. Organizations also see it as a way to expand their brand to new geographic areas.