Gwinnett Hospital System, Northwest Georgia Health System and Piedmont Hospital have agreed to merge into a holding company that would create one of Atlanta's largest regional healthcare systems with nine hospitals and 2,013 beds (Jan. 10, p. 8).
The merger is subject to Federal Trade Commission approval, which is expected in September, executives said. Executives have not chosen a name for the new holding company.
The merger is designed to reduce costs, end duplicative services and enhance managed-care contracting, said Bernie Brown, Northwest Georgia's president and chief executive officer.
Northwest Georgia was formed as a holding company last year through the affiliation of four county hospitals located around northwestern metropolitan Atlanta (March 22, 1993, p. 4). It has since added two county hospitals in the Atlanta-area communities of Dallas and Canton. Piedmont Hospital is a 500-bed facility located in northeast Atlanta.
Gwinnett operates two hospitals in Lawrenceville and Duluth.
The system would employ 10,363 employees, include 2,000 physicians and generate gross annual revenue of $891 million.
The new system would compete with a nine-hospital system proposed by Emory University and Columbia/HCA Healthcare Corp. Emory and Columbia signed letters of intent to affiliate in May, with a final deal expected in October (May 30, p. 10).