Piedmont Healthcare is increasing its already sturdy presence within the higher Atlanta space with the proposed acquisition of 4 HCA Healthcare hospitals inside 90 miles of Atlanta.
The not-for-profit well being system, which is predicated in Atlanta, introduced Monday it plans to pay about $950 million for the amenities, whose working margins averaged 13.4% of their most up-to-date federal filings. That is properly above the 6.7% common working margin throughout Piedmont’s 11 acute-care hospitals in 2020, in accordance with a Fashionable Healthcare evaluation of price studies filed with the CMS.
Piedmont CEO Kevin Brown referred to as the deal an “thrilling alternative” in a statement.
“HCA Healthcare has instilled a excessive commonplace of care into these amenities, and we’re proud that they’ve trusted Piedmont to proceed this legacy,” he stated. Neither Piedmont nor HCA agreed to remark past their information releases.
The deal nonetheless must endure regulatory approval, and the organizations stated they plan to shut on July 31. Georgia Lawyer Normal Chris Carr won’t assessment the proposed transaction, as his workplace solely has purview over not-for-profit hospital offers in Georgia. HCA is a for-profit firm.
“So, as soon as Piedmont owns them, any sale or lease can be topic to our assessment if Piedmont determined to do a transaction sooner or later,” Katie Byrd, lawyer common spokesperson, wrote in an e mail.
9 of HCA’s 185 hospitals have been situated in Georgia as of Dec. 31, 2020. This transaction contains 4 of its 5 hospitals within 90 miles of Atlanta. Most of Piedmont’s 11 hospitals are clustered around the greater Atlanta region, besides for 2 in Columbus, a metropolis that borders Alabama.
HCA emphasised its deal with its remaining community of amenities in southeast Georgia, particularly with its buy of Meadows Regional Hospital in Vidalia from Meadows Well being Alliance, a deal that closed on Monday.
One of many hospitals Piedmont plans to purchase, HCA’s Cartersville Medical Heart, posted a remarkably excessive 32.8% working margin in 2020. The 119-bed Cartersville hospital, which has a degree III trauma heart and a 43-bed emergency division, is simply over 40 miles from Piedmont’s Atlanta hospital.
One other hospital that is a part of the deal, 310-bed Coliseum Medical Heart in Macon, reported a 12.1% working margin in 2020. It is just below 90 miles from Piedmont’s Atlanta hospital. Piedmont additionally plans to purchase HCA’s Coliseum Northside in Macon, a 103-bed hospital whose working margin was 4.2% in 2020. As a part of the deal, Piedmont would purchase an ambulatory surgical procedure heart in Macon with three working rooms.
Piedmont additionally plans to purchase HCA’s Eastside Medical Heart in Snellville, which drew a 4.7% working margin in 2020 and is situated simply 30 miles from Piedmont’s Atlanta hospital. The power features a north campus with 229 acute-cares and a 46-bed emergency division and a south campus with a 61-bed inpatient psychiatric heart, a 20-bed inpatient rehabilitation facility and an 11-bed emergency division.
Piedmont’s Henry Hospital in Stockbridge is its most worthwhile, having generated an nearly 17% working margin in 2020. Piedmont’s two hospitals in Columbus are its second most worthwhile, with working margins of about 13% and 15.6% in 2020. 4 of Piedmont’s hospitals misplaced cash in 2020, federal filings present.