CLARKESVILLE – The Habersham County Commission is moving forward with agreements that set up the eventual acquisition of Habersham Medical Center by Northeast Georgia Health System by 2025.
That 4-0 vote Monday night to approve the asset purchase agreement and the option agreement came on the motion of Commissioner Natalie Crawford that was seconded by Commissioner Jimmy Tench.
The agreement between the Habersham County Commission, Hospital Authority of Habersham County and the Hall County/Gainesville Hospital Authority, was approved by both the hospital authority and county commission in Habersham in separate meetings Monday night.
“We voted on and executed the definitive agreement with Northeast Georgia that really enters into an affiliation relationship with them over the next five years,” said Commission Chairman Stacy Hall. “If we reach certain milestones in five years, it will culminate in an asset purchase, so we’re excited about it.”
The five-year plan is intended to transform Habersham Medical Center’s campus, ultimately making the hospital part of Northeast Georgia Medical Center while lessening the debt burden on Habersham County’s taxpayers, a joint press release from the two hospitals states.
“Many people in Habersham County have asked for a deal like this for years, and many before us have tried to make it happen,” said HMC Chief Executive Officer Lynn Boggs in a statement. “We’re thrilled to deliver this agreement, which can lead to security and stability for this community’s local hospital. We are truly working together for healthier tomorrows.”
The five-year plan calls for Northeast Georgia Health System to invest $3 million per year, for a total of $15 over five years, to help Habersham Medical Center find capital projects to enhance and expand services for the Demorest hospital.
During the five years of the agreement, any money Habersham Medical Center generates beyond 20 days of cash on hand to support operations will be transferred to a designated fund that at the end of the term would be applied by the Hospital Authority of Habersham County to the hospital’s bond debt.
“It’s been a lot of work by a lot of people for a year now,” Hall said.
During the five years of the agreement, the leadership and staff of Habersham Medical Center will continue to operate the facility under the direction of the Hospital Authority of Habersham County.
“For now, nothing changes in the way we operate,” said Kesha T. Clinkscale, vice president of external affairs at Habersham Medical Center. “NGHS will continue to support our emergency and inpatient services. We will continue to work together to improve care coordination between our organizations and monitor progress.”
Emergency and inpatient physicians from Northeast Georgia Medical Center campuses began providing coverage to Habersham Medical Center July 1.
At the end of the agreement term, Northeast Georgia Health System will have the option to acquire Habersham Medical Center, which is the intended outcome, the joint statement reads.
“We have a vision for the future of health care in Habersham County, which in turn impacts how care is delivered across our entire region,” said NGHS President and CEO Carol Burrell in a statement. “This plan will lead to updated facilities, improved services, advanced technology and better coordination for patients – closer to home.”
Habersham Medical Center is a 53-bed, acute care hospital.
Northeast Georgia Health System is a non-profit organization that operates hospital campuses in Gainesville, Braselton, Dahlonega and Winder with more than 700 beds and more than 1,100 medical staff members.
“Within 60 days we’ll be having a public hearing just to educate folks on what the deal means, how it’s put together, because it is different,” Hall said. “It’s very unique in how it was structured, but this is a good thing for the county.”
A notice of that meeting was posted Tuesday by Habersham Medical Center and reads:
“There will be a public information forum on Monday, Nov. 18, at 6 p.m. in the Habersham Medical Center West Wing Classroom. The purpose of this forum is to discuss the current Northeast Georgia Health System/Habersham Medical Center affiliation and potential future transaction.”
The five-year plan officially will begin after the November community forum, Clinkscale said.
