Atlanta-based system gets the state’s OK to establish third regional hub, on border with Alabama.
The Georgia Attorney General’s Office put its stamp of approval Friday on Piedmont Healthcare’s acquisition of Columbus Regional Healthcare System, authorizing the next stage of the Atlanta-based system’s “hub-and-hub” strategy.
The nonprofits exercised due diligence appropriately and fulfilled their obligations under state law, according to the attorney general’s report, which considered 13 factors in assessing the deal.
Twelve people offered comments last month during a public hearing at the Midtown Medical Center Conference Center in Columbus, all of them in support of the acquisition, the report states.
Related: Piedmont Pursuing ‘Hub-and-Hub’ Growth Strategy
Columbus Regional operates two acute care hospitals in Columbus—the 100-bed Northside Medical Center and the 583-bed Midtown Medical Center—plus a number of other facilities and a foundation, serving 10 counties in Georgia and Alabama.
In 2016, after discussing concerns over the system’s “viability as an independent provider,” the Columbus Regional board solicited proposals from 13 potential partners, including for-profit entities, nonprofits, academic medical centers, and religious health systems, the attorney general’s report states.
Six potential partners, all of them nonprofits, responded, and the board selected four finalists. Warren Steele, chairman of the Columbus regional board, said during last month’s public hearing that Piedmont’s proposal stood out.
“Mr. Steele testified that Piedmont was selected because of its cultural fit, shared strategic vision, strong financial position, its historical success with strategic partnerships, and Piedmont’s commitment to local control,” the report states.
Piedmont committed to taking on about $280 million in Columbus Regional’s debt and investing heavily in the Columbus market as a third regional hub, as HealthLeaders Media previously reported.
A spokesperson for Piedmont said Monday that Columbus Regional Health will officially become Piedmont Columbus Regional on March 1, with a ribbon-cutting ceremony, making Piedmont a 10-hospital system.
Nearby M&A activity
Piedmont's deal comes as other healthcare organizations are making moves in the area.
Emory Healthcare, which is also based in Atlanta, signed a letter of intent last fall to acquire DeKalb Medical Center in Decatur, Georgia. Carolinas HealthCare System, based in Charlotte, North Carolina, changed its name to Atrium Health earlier this month and reached across state lines to announce a strategic partnership with Navicent Health, based in Macon, Georgia.
Just north of this hubbub, meanwhile, Chattanooga-based Erlanger Health System announced it had crossed into North Carolina to acquire Murphy Medical Center.
Editor's note: This story was updated to include a response from Piedmont.
Steven Porter is an associate content manager and Strategy editor for HealthLeaders, a Simplify Compliance brand.