In an important move that advances both of their provider strategies, Emory Healthcare and Columbia/HCA Healthcare Corporation are teaming up to create the most comprehensive healthcare delivery system in metropolitan Atlanta. An agreement signed yesterday will bring eight Atlanta area hospitals and five surgery centers owned by Columbia/HCA as strong new additions to the Emory Healthcare network. Philip D. Green, partner at Green, Stewart, Farber & Anderson, P.C., Washington, D.C., and Jonathan W. Lowe, a partner and health care corporate finance practitioner at
Alston & Bird LLP, Atlanta, Georgia, served as lead outside counsel for Emory Healthcare. Mr. Green represents a number of academic medical centers in health care transactions across the nation. As a member of Alston & Bird's Healthcare Corporate Finance practice, one of the nation's largest groups of corporate finance attorneys working exclusively in health care, Mr. Lowe's practice concentrates on entity affiliations, networks, mergers, acquisitions, reorganizations and financing. Messrs. Green and Lowe worked closely with Lorraine Hess Spencer, Emory Healthcare¡¦s general counsel.
Expected to go into effect no later than January 1, 1999, the new agreement provides for creation of a limited liability company (LLC) overseen by a board jointly governed by Emory Healthcare and Columbia/HCA Healthcare Corporation. Under the new arrangement, Emory will be responsible for clinical management and oversight of quality assurance in the thirteen facilities. Columbia/HCA will be responsible for the management of the day-to-day operations of the facilities.
Upon full implementation of the arrangements between the parties, Cartersville Medical Center, Dunwoody Medical Center, Eastside Medical Center, Metropolitan Hospital, Northlake Regional Medical Center, Parkway Medical Center, Peachtree Regional Hospital, and West Paces Medical Center will all provide patient care under the Emory Healthcare umbrella. All eight hospitals are JCAHO accredited, one with commendation, and 92 percent of the physicians practicing there are board eligible or board certified. Each hospital will retain its same employees and medical staffs. Signage and materials will reflect the addition of Emory Healthcare to the local name.
The agreement extends to five ambulatory surgery centers: Atlanta Outpatient Surgery Center, Atlanta Outpatient Specialty Services, Atlanta Outpatient Peachtree Dunwoody, Marietta Surgical Center, and Northlake Surgical Center, all of which will retain their same local names, employees, and medical staffs.
Columbia/HCA will continue to own the buildings and other physical assets of eight hospitals and five surgery centers. The LLC will lease these facilities for the duration of the agreement and provide overall operational management.
None of the existing Emory Healthcare facilities, and none of the other hospitals or facilities owned by Columbia/HCA elsewhere in Georgia, are included in the deal. Columbia/HCA will retain complete interest and control of its facilities outside of Atlanta. Emory Healthcare will retain complete interest and control of all its own clinics and hospitals.
Commenting on the agreement, Phil Green stated, "This arrangement is a near perfect fit with Emory Healthcare's strategic and operational plans. It's a win-win for both parties.¡¨ Added Jon Lowe, "This new alignment widens the community's access to care under the Emory Healthcare umbrella. It's an exciting development that should improve the availability of quality healthcare for a considerable portion of the population in the Atlanta area.¡¨
Emory Healthcare is currently comprised of Emory University Hospital, Crawford Long Hospital, Wesley Woods Center, including the Wesley Woods Geriatric Hospital, and a joint interest in Emory Adventist Hospital. Emory Healthcare also includes two non-profit group practices of the Emory University School of Medicine: the 700 physician member Emory Clinic, the largest and most comprehensive group practice in Georgia, and the 100 physician member Emory Children's Center, the state's largest multi-specialty group practice for pediatric care.
Green, Stewart, Farber & Anderson has 20 attorneys in offices located in Washington, D.C., Chicago and Albany, N.Y. Alston & Bird, with 450 attorneys, is based in Atlanta, with offices in Washington, D.C., and Charlotte and Raleigh, North Carolina.