WellStar and Emory End Merger Plans

[Al Lee Gator]

After months of talks, the largest metro Atlanta health systems, WellStar and Emory University, opted not to merge WellStar announced last week.

WellStar has five hospitals in northwest metro Atlanta, including WellStar Paulding and Kennestone Regional Medical Center in Marietta. Emory operates six hospitals and both employ hundreds of doctors at various locations around the metro area.

Earlier this year the two had announced plans to combine assets, which would have resulted in a nonprofit health system that would have been the largest of its kind in Georgia and one of the largest in the nation.

Talks came at a time when health systems are increasingly consolidating hospitals and physician practices in an effort to save money and gain more leverage in dealings with insurers. A spokesperson for Paulding WellStar, contacted by phone after the announcement, had no comment.

According to a press release issued last week by WellStar,

“After a few months of discussion and review with Emory University, the WellStar Board of Trustees has determined a new strategic direction,” said Gary Miller, chair of WellStar Board of Trustees. “WellStar has declined to enter the next stage of discussions with Emory University. We respect Emory University as a leading, international academic medical center.”

With ever-changing government regulations and reimbursements, health systems are looking for new efficiencies that will allow for higher quality, improved access to healthcare and the ability to maintain a competitive cost structure, the release stated.

Miller also announced last week that Candice Saunders will take over as president and CEO of the health system starting July 1, as part of a succession plan set in place 18 months ago. Current CEO, Reynold Jennings, will become chief strategy officer for the system.

Saunders will be focused on building partnerships that will emphasize WellStar’s role in all the communities WellStar serves while maintaining its not-for-profit status.

As an example, WellStar Health System recently announced that West Georgia Health in LaGrange is set to join the system.

[msgastorm]

I am oh so happy this didn't happen! Wellstar's rating would have pulled Emory's down. It would not have been a good move for Emory. I would rather drive into Atlanta to see a competent Emory physician or a specialist who is an Emory graduate. I am not the only one as many of my friends who see a specialist/s on a regular basis also feel this way.

[mei lan]

I am oh so happy this didn't happen! Wellstar's rating would have pulled Emory's down. It would not have been a good move for Emory. I would rather drive into Atlanta to see a competent Emory physician or a specialist who is an Emory graduate. I am not the only one as many of my friends who see a specialist/s on a regular basis also feel this way.

Oh, baby doll, I could not agree more!!! I personally think Emory dodged a MAJOR bullet with this move.