WellStar In Talks To Buy Tenet Hospitals In Georgia

Hospitals have been looking to scale their operations as part of a bigger trend in the industry, but the lack of Medicaid expansion in Georgia could also be another factor for Tenet’s sale, said Chris Kane, principal at DHG Healthcare.

“As an investor-owned company, Tenet is accountable to their shareholders,” Kane said. “In markets where you know everyone walking in through your emergency department has at least a Medicaid Card, then that can improve performance.”

Georgia is one of 19 states that haven’t expanded Medicaid under the Affordable Care Act. Nearly 600,000 Georgians could have been covered under expanded Medicaid in the state.

Earlier this year, Marietta-based WellStar backed out of discussions with Emory Healthcare for a potential merger.

Tenet’s five hospitals in Georgia are the Atlanta Medical Center, North Fulton Hospital, South Fulton Medical Center, Spalding Regional Medical Center and Sylvan Grove Hospital. 

The organizations declined requests for interviews on the discussions, but issued a joint statement: 

Tenet Healthcare and WellStar Health System have begun exclusive, non-binding discussions about a potential sale of Tenet’s Atlanta-area hospitals and associated facilities to WellStar. This is to ensure that these hospitals and facilities are best-positioned to meet the needs of their communities and continue delivering high-quality healthcare for many years to come. While these discussions continue, we will maintain our standard policy of not commenting on development activities until we have something definitive to announce.