ATLANTA — WellStar Health System has signed an agreement to buy Dallas, Texas based Tenet Healthcare’s five metro Atlanta hospitals.
WellStar’s board approved the purchase of North Fulton Hospital, in Roswell, Spalding Region Hospital, in Griffin, Sylvan Grove Hospital, in Jackson, Atlanta Medical Center and the Atlanta Medical Center’s south campus, in East Point.
“We have a deep respect for WellStar’s commitment to the Atlanta community and its people. We are pleased our people and operations are joining a network with a shared vision to continuously improve health care and invest in its system’s growth,” Tenet Healthcare vice chairman Keith Pitts said.
President and CEO of WellStar Candice Saunders said the move will give patients more choices and help keep costs low.
“Through our compassionate and skilled caregivers, WellStar serves the health care needs of a diverse, growing population,” said Saunders.“These strategic moves are a continuation of our mission to improve the health and well-being of our communities.”
Back in February, WellStar was considering a possible merger with Emory University Hospital, but those discussions ended with neither side opting to move forward.
Bill Custer, a professor in the Institute of Health Administration at the Georgia State business school, said hospital mergers and buyouts are part of a national trend.
“Exactly how it’s going to affect customers in terms of cost is not clear. It has potential for both higher and lower costs,” he said.
WellStar’s deal with Tenet Healthcare still has to be reviewed by the Federal Trade Commission and approved by the Georgia attorney general. They hope to close on the deal by the end of February.