The Federal Trade Commission has given antitrust approval to a merger of four-hospital Piedmont Healthcare in Atlanta and the publicly owned Henry Medical Center in Stockbridge, Ga.
FTC approves Piedmont-Henry merger
Full financial terms of the transaction between the health system and the 215-bed community hospital south of Atlanta have not been disclosed.
Henry Medical Center officials said in an April news release that the deal would be structured so that Piedmont operates the hospital under a long-term lease, rather than through a full asset merger. The Hospital Authority of Henry County will continue to legally own the hospital and will lease it to the not-for-profit corporation Henry Medical Center Inc., which becomes a subsidiary of Piedmont in the transaction.
Under the agreement, the hospital authority will eliminate its tax levy, and Piedmont will assume the public system's existing bond debt.
Piedmont announced in June that it was eliminating 5% of its workforce to save about $68 million. Piedmont earned $93 million in net income on $1.3 billion in total revenue in 2010 following net losses in 2008 and 2009, according to financial disclosures in bond documents.
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