CLARKESVILLE – The Habersham County Commission and Hospital Authority of Habersham County voted separately Monday night to approve a letter of intent between Habersham Medical Center, Habersham County and Northeast Georgia Health System.
“This is very exciting news for the county, for Habersham Medical Center in that we’ve just entered a partnership with [Northeast] Georgia Health System with Habersham Medical Center that will really be over a five-year period that we grow clinical integration services within the hospital that will lead us to a full-asset acquisition,” said Habersham County Commission Chairman Stacy Hall after Monday night’s announcement. “So, if we reach certain steps within the agreement, [Northeast Georgia Health System] could purchase Habersham Medical Center.”
The purpose of the LOI for the parties to evaluate and finalize a proposed five-year agreement designed to invest a total of $15 million in Habersham Medical Center’s capital assets to enhance healthcare services.
“We’re still working out the definitive agreement, but the letter of intent was signed tonight between Habersham County, Habersham Medical Center and [NGHS],” Hall said. “As you know, the county owns the debt to Habersham Medical Center. That’s why we were involved. This partnership allows us to keep the hospital open. It allows us to provide top-quality healthcare and allows us with the best opportunity to pay down the debt owed on the hospital bonds.”
Hall called Monday’s announcement a win primarily for the taxpayers of Habersham County.
The agreement in the letter of intent outlines a five-year plan for NGHS to invest $3 million annually to help Habersham Medical Center fund capital projects to enhance and expand services for the Demorest hospital.
During the five-year period, any dollars Habersham Medical Center generates beyond 20 days of cash on hand to support operations would be transferred to a fund. At the end of the agreement term, the fund balance would be used at the discretion of Habersham Medical Center and the Hospital Authority of Habersham County, with the intent of applying the funds to Habersham County’s debt.
Habersham Medical Center operations will remain under the leadership and staff, under direction of the Hospital Authority of Habersham County.
At the end of the definitive agreement term, NGHS would have the option to acquire Habersham Medical Center.
Habersham Medical Center is a 53 licensed bed acute care hospital serving Habersham and surrounding counties. The hospital operates Habersham Home, an 84 licensed bed skill nursing facility, and HCMC Home Car, the service area’s sole agency for hospital-based home health providers.
Since 1951, Northeast Georgia Medical Center has grown to include hospitals in Gainesville, Braselton and Barrow County, with a total of 713 beds and more than 800 medical staff members representing more than 50 specialties.
Northeast Georgia Medical Center is part of Northeast Georgia Health System, a nonprofit that serves residents of 18 counties.
http://accesswdun.com/article/2019/5/796682/habersham-officials-sign-letter-of-intent-with-nghs-culminating-in-planned-acquisition