MACON, Ga. — A political controversy in North Carolina could have implications for Central Georgia’s largest hospital.
As the ‘strategic partnership’ between Navicent Health and North Carolina-based Atrium Health rolls into its sixth month, more than $300 million of Navicent debt is coming under scrutiny.
According to reports from Charlotte CBS-affiliate WBTV, North Carolina state regulators shot down a proposal from Atrium Health to refinance more than $300 million in debt
That debt, according to the documents initially obtained by WBTV, belongs to Macon’s Navicent Health.
You might remember Atrium and Navicent joined forces in what they're calling a 'strategic partnership' back in January.
Looking at the bigger picture – what does this mean for Navicent? It's Central Georgia's largest hospital, could this debt affect its future?
13WMAZ asked the hospital that question and more than half a dozen others relating to possible reductions in staff, the future of the partnership, and capital investments.
The hospital did not provide anyone to speak on camera, but did send us the following unedited written statement. It did not directly answer many of those questions.
“Our strategic combination with Atrium Health provides us with a lot of benefits when looking for economies which help both organizations.
With that in mind, the refinancing of the $306M in Navicent Health bonds by Atrium Health through their Hospital Authority was part of the process to decrease the amount of interest accrued by our debt. Just like when a homeowner refinances their mortgage to achieve a lower interest rate, our combination with Atrium Health allowed us to access lower interest rates by combining our debt.
As anticipated, our strategic combination has given us many synergistic opportunities focused on affordability and lower costs that we have come to realize since its inception. By doing this we are able to provide greater access to high quality healthcare services close to home and continue to advance our mission to improve health, elevate hope and advance healing – for all.
Navicent Health is a fiscally responsible organization with a strong balance sheet. Navicent Health, along with the strong clinical, financial and operational attributes of Atrium Health, will not only achieve but exceed the expectations of this combination for our community.”
The documents Atrium filed with North Carolina note that Navicent has more than $600 million in unrestricted cash and investments, which they say is "well in excess" of their current debt.
The Atrium-Navicent deal was approved by Georgia's attorney general in December.