Northside Hospital and Saint Joseph's Hospital, two tertiary-care facilities located across the street from one another in Atlanta, have agreed to create a new corporation to manage both hospitals.
Under the proposed agreement, both hospitals would retain control of their assets. A final agreement is expected to take four months to complete, executives said.
Northside, a 460-bed hospital, is an independent facility; 346-bed St. Joseph's is part of 14-hospital Eastern Mercy Health System, Radnor, Pa.
The hospitals have discussed various arrangements in the past, but two recently announced networks in Atlanta brought them back to the bargaining table. The networks include 10-hospital Promina Health System and an eight-hospital group owned by Columbia/HCA Healthcare Corp.
The Northside/St. Joseph agreement is expected to lead to increased managed-care contracting and fewer duplicative services, executives said.