DEMOREST — The Hospital Authority of Habersham County voted Tuesday afternoon to sign a non-binding letter of intent for exclusive discussions with Northeast Georgia Health System regarding an affiliation between Habersham Medical Center in Demorest and NGHS.
The unanimous vote came when the hospital authority reconvened a meeting recessed Monday night.
The letter of intent is a three-party agreement between the Hospital Authority of Habersham County, Habersham County Commission and Northeast Georgia Health System, said Commission Chairman Victor Anderson.
"This process has been long, tedious and we have achieved the result that I think will be the best option for all parties involved, not just the hospital authority and the county commissioners, but the taxpayers, the citizens of Habersham County, and everyone who uses this hospital, as well as Northeast Georgia," Anderson said. "This is a three-party agreement to begin the final negotiations that lays the groundwork that will ensure that there is a functioning hospital here in Habersham County for many years to come. I think overall this is probably the best option for us. Of all the options we considered, this is by far the best option all the way around."
In the spring of 2016, the Hospital Authority of Habersham County commissioned a national search for a potential partner to assist Habersham Medical Center in meeting its long-term strategic goals. A lengthy examination process has followed.
"It has been very intense since early fall," said Hospital Authority of Habersham County Chairman Kim Crawford. "We elected to go through what's called the RFP process, which is a request for proposal. We went through that process and generated a lot of interest. We had responses from about 13 or 14 entities. Then once we signed the confidentiality agreements, we sent out our written documentation to them to consider whether or not to submit a proposal back. We got multiple responses to that.
"Then through a process we narrowed this down," Crawford said. "The process included onsite visits to other places, a lot of conference calls, a lot of meetings, and through that process we selected the preferred partner today, which is Northeast Georgia Medical Center, which I think is a fantastic fit."
Habersham Medical Center Administrator Jerry Wise is optimistic about Tuesday's decision.
"From our perspective, we hope it means that the hospital, Habersham Medical Center, will remain a viable entity in this community for years to come," Wise said. "We feel like the affiliation will give us the resources and wherewithal to make sure that that happens. Our primary concern is that we keep an acute care facility in this community to serve the citizens of this community," Wise said.
A 53-bed acute-care hospital, Habersham Medical Center employees roughly 700 people, Wise said.
"We have had ongoing discussions with the Habersham County Hospital Authority and Habersham County Commission for the past several years about the strategic direction and future of Habersham Medical Center, and we are pleased that those discussions have ultimately concluded with this letter of intent," said Carol Burrell, president and CEO of NGHS in a statement. "HMC is a natural strategic fit with NGHS due to our contiguous service region and the many clinical partnerships already in existence. We are excited about what the future holds as we work together even more seamlessly for the benefits of our shared patients."
Habersham Medical Center and NGHS will continue exclusive discussions with the intent to execute a definitive agreement for NGHS to acquire HMC. Regulatory requirements and approvals would be necessary for any resulting transaction, and that process could take up to 12 months.
"We feel like if things move at the average pace that these types of things go through, based on the best estimate from our consultants, that we should be able and hope to terminate this by October/November timeframe," Crawford said.
Crawford, Anderson and others say they believe the preferred partnership with Northeast Georgia Health System is what's best for Habersham County residents and those in surrounding counties.
"By going through this process, it's a competitive process and therefore it gives a high degree of assurance that you get a bona fide, legitimate offer," Crawford said. "It also meets our due diligence requirements as far as seeking out all potential affiliates, and do our due diligence to get the best affiliation and partnership we can for the future healthcare of this county."
Habersham Medical Center also operates Habersham Home, an 84-licensed-bed skilled nursing facility, and HCMC Home Care, the service area's sole agency for hospital-based home health providers.
