A consolidation agreement may be on the horizon for two Atlanta-area hospitals. According to a joint news release (PDF), 403-bed Atlanta Medical Center and 180-bed South Fulton Medical Center, East Point, Ga., are in discussions with officials from the state's community health department “to determine the most viable option and to secure all necessary approvals” for such a deal.

Both hospitals are owned by Dallas-based Tenet Healthcare Corp.

Combining the two hospitals would alleviate some stress and streamline the two facilities' offerings, James Clements, South Fulton Medical Center's CEO, said in the release.

“We have been looking for ways to improve the hospital's financial picture, especially in light of the continued changes in the healthcare environment,” Clements said. “Consolidating our operations with those of AMC will enable us to achieve financial and operational efficiencies and build on our strengths to continue to serve the (East Point) community.”

The two hospitals said consolidation is expected to be completed by the end of 2012. South Fulton Medical Center will become Atlanta Medical Center-South Campus, according to the release.

Some upper management positions will likely be eliminated, said a spokesman for Atlanta Medical Center, adding that it's too early to speculate about other layoffs.