One of Georgia's deputy attorney generals has given a North Carolina healthcare chain the go-ahead to take control of Macon's Navicent Health.
Last week, W. Wright Banks -- a deputy attorney general in the Commercial Transactions and Litigation Division -- filed his ruling that said the takeover would serve the public and benefit Central Georgians.
According to his report, the deal is not a merger, and Navicent's other Central Georgia hospitals are not being sold or leased.
Navicent would continue to operate as a Georgia nonprofit, controlled by the Atrium Health.
Wright's report says Atrium has agreed to:
- Spend at least $425 million over the next 10 years in capital projects for Navicent
- Continue current "charity care, Medicaid and community-health operations," currently valued at nearly $600 million.
- Continue Navicent's current "core services," which can't be ended without approval from Navicent's own board
- Maintain or expand its physician-residency program and its four-year medical-school program with Mercer University
In February, the two companies said Navicent would act as Atrium's "regional hub" to provide health care throughout Central and south Georgia. They said the collaboration would allow them to reduce costs, and increase access especially in rural areas.
The deal came about after Navicent's board decided in 2017 to seek a partnership with a larger health system, Wright wrote.
A consultant helped Navicent choose Atrium from about 19 potential partners. But they did not conduct a formal process to solicit and select proposals, "which is typically the preferred approach," Wright wrote.
State law requires the Georgia attorney general's office to review hospital transactions, and Wright's report says the Navicent-Atrium deal meets all the requirements set out in the law.
Navicent's properties in Central Georgia include the Medical Centers in Macon, Peach County, and Baldwin County, and the Children's Hospital in Macon. They also manage hospitals in Putnam and Monroe counties. They employ an estimated 5,000 people in Bibb County alone.
The Charlotte Observer reported that Atrium has 40 hospitals and about 65,000 employees.
Navicent spokeswoman Megan Allen
Navicent spokeswoman Megan Allen released a statement Monday afternoon about the merger, saying, "Navicent Health and Atrium Health are pleased that the Georgia Attorney General's Office has approved our proposed strategic combination. We believe this strategic combination between Navicent Health and Atrium Health will have a significant and positive impact on the communities we are privileged to serve, and we look forward to expanding access to quality healthcare while reducing healthcare disparities in all areas of healthcare service. By working together, Navicent Health and Atrium Health can implement innovative treatment models like virtual care and telepsychiatry throughout central and south Georgia, creating the next generation of healthcare that is better for all we serve.
With the final approval from the Georgia Attorney General's Office, our proposed agreement will now go to both the Navicent Health and Atrium Health Boards for final approval. Over the next several weeks, we will finalize our plans to launch the combined organization. Once remaining details are completed, we look forward to sharing additional information and more specific timing.
Through this strategic combination, we look forward to elevating health, hope and healing to individuals and communities not just in central and south Georgia, but across the entire Southeast region."