Area officials reached an agreement Tuesday evening that will see Habersham Medical Center officially join Northeast Georgia Health System in 2023.
According to a press release from NGHS, the Hospital Authority of Habersham County, Habersham County Government and the Hospital Authority of Hall County and the City of Gainesville entered a five-year agreement to secure the future of HMC in 2019. That agreement called for the Hospital Authority of Hall County and the City of Gainesville to invest $3 million per year in capital improvements for HMC for a total of $15 million over five years.
The five-year agreement included options for the Hospital Authority of Hall County and the City of Gainesville to assume ownership of HMC at the end of the agreement in 2024 or earlier. All three parties involved in the original agreement agreed Tuesday to execute an early transition. The Hospital Authority of Hall County and the City of Gainesville will also provide the fifth and final $3 million investment on or before July 1, 2023. At that time, the Hospital Authority of Hall County will immediately lease the hospital to NGHS or its affiliate.
“This is the best possible scenario for the future of Habersham Medical Center and the health of everyone in our community,” Dolly Ritchie, chair of the Hospital Authority of Habersham County said. “It’s a little earlier than originally planned, but it’s the right thing to do for all the right reasons.”
HMC and NGHS also agreed on Tuesday to enter into a Management Services Agreement until the early acquisition date of July 1. NGHS management will provide day-to-day oversight and review of critical functions and services as well as financial services and information technology services support, with regular updates to the Habersham Hospital Authority and Habersham County representatives.
The announcement comes after a recent decision by Habersham County to extend a $1.5 million line of credit to keep HMC open. That existing line of credit will be increased to a maximum of $6 million to help cover HMC's operating costs until the ownership transfer. The additional funds will be funded by American Rescue Plan funds originally intended to fund the renovation of the Habersham County Airport's hangar. The increased line of credit will not place any tax burden on the citizens of Habersham County.
“Stabilizing the long-term future for HMC and putting the hospital on a better financial path to grow is currently the most pressing need in our community, and this agreement accomplishes that – positioning HMC to become a vital hub for healthcare in this part of the state,” Bruce Palmer, chair of the Habersham County Commission said. “It’s a big win for our county and an increasingly rare positive outcome for a rural hospital at a time when at least eight rural hospitals have closed in Georgia during the past decade.”
The latest reports from the Georgia Hospital Association estimate HMC's local and state economic impact at $117 million. NGHS' four hospitals have a combined impact of more than $3.5 billion. NGHS has also received "A" grades for its current finances as well as positive outlooks for its financial future from the national ratings agencies S&P and Fitch.
“There is clear data that shows a direct link between the economic health of a community and having a vibrant, local hospital and healthcare providers,” said Charlie Fiveash, executive director of the Habersham Economic Development Council. “Being connected to a rock-solid organization like NGHS will help beyond the bedside by attracting more strong economic development in Habersham, which in turn brings in more tax revenue from businesses and lessens the tax burden on people who live in our communities.”
“NGHS is committed to making more long-term, multimillion-dollar reinvestments in infrastructure improvements for HMC in the coming years – at no cost to the county or taxpayers,” said John Kueven, who is president of Northeast Georgia Medical Center Gainesville and has oversight of NGHS’ other hospitals in Lumpkin and Barrow counties. “Those reinvestments, like installing the same electronic health record we use at all other NGHS hospitals, are necessary to accomplish our shared vision to better coordinate care – so people can get most of their routine, specialty, and hospital care without leaving Habersham County.”
NGHS and HMC plan to work together with local physicians and the region's medical community to seek input on aligning services to ensure long-term sustainability.
“Our goal throughout these discussions, over many years, has always been to best serve the people of Habersham County by providing high-quality, local care they can trust,” Carol Burrell, president and CEO of NGHS said. “We should all be thankful for the Habersham County leaders and community supporters who worked diligently together to help save their local hospital, which will be the key to physical and economic wellbeing for generations to come.”
