Mayo Clinic will also take a majority of seats on Satilla's board of directors and will become the sole member of the 187-bed acute-care hospital.
The facilities will be renamed Mayo Clinic Health System in Waycross.
“I think there are a number of returns,” said Dr. Kenneth Calamia, a Mayo Clinic physician who will serve as CEO at Waycross, who noted that patients will be able to receive care at both locations. “Physician recruitment is certainly one of the things we'll be able to improve with the integration.”
Robert Trimm, Satilla's current president and CEO who will become chief administrative officer, said the merger allows Satilla to draw on Mayo Clinic's knowledge and take advantage of a difficult healthcare environment. “The culture and the commitments and the principles and the values fit together very well,” he said.
Satilla began exploring the idea of a takeover in 2009 after receiving an unsolicited bid from an undisclosed suitor, according to the attorney general's report. The hospital then retained consulting firm Stroudwater Associates, which found that while Satilla wasn't in any immediate financial distress, it was under pressure from healthcare reform and decreasing state Medicaid reimbursement.
Robert Brigham, chief administrative officer at Mayo Clinic Jacksonville, noted that the Florida-based hospital began scouting the region about three years ago to take advantage of growing patient demand in the southeast.
Satilla approached Mayo about a potential deal in 2010. An Ernst & Young report obtained by Mayo found that the takeover will yield $52.5 million to $63.8 million in incremental operational synergies over a five-year period, according to the attorney general's report.