STOCKBRIDGE/ATLANTA, Ga. (August 24, 2011) – The Boards of Directors of Henry Medical Center and Piedmont Healthcare and the Hospital Authority of Henry County announced today that they have approved the detailed terms for the addition of Henry Medical Center to Piedmont Healthcare. The relationship will involve a long-term lease of assets from the Hospital Authority of Henry County and a newly reconstituted Board of Directors of Henry Medical Center, which will become a subsidiary of Piedmont Healthcare. Over the next 90 to 120 days, necessary regulatory approvals will be pursued prior to the signing of definitive agreements, with projected “go live” of the new organization by January 2012.
Commitments by Piedmont Healthcare as part of the agreement include:
- Reconstituting the Henry Medical Center Board with a majority of representation comprised of community members and physicians; leadership from Piedmont Healthcare will also serve in a Board capacity.
- Continuing to meet all commitments made by HMC to the Authority related to the provision of care to the disadvantaged, the uninsured, and the indigent, and to the provision of community benefits.
- Guaranteeing the obligations of Henry County relating to the existing bond debt of HMC.
- Relieving Henry County of its obligation to pay HMC approximately $6 million a year for indigent care.
- Working with HMC’s board and management to develop and implement a multi-year plan to establish new clinical services and expand existing services.
- Providing a significant amount of funds for capital investments for the benefit of HMC and its community.
- Continuing HMC’s financial and other support to community organizations, including local educational institutions.
“I am truly excited about what Piedmont Healthcare will bring to our hospital and to the citizens of Henry County,” said Jeff Mills, Chairman of the Henry Medical Center Board of Directors. “During our exhaustive selection process, Piedmont demonstrated they were the right partner for Henry Medical Center.”
“Piedmont has validated our decision during the development of the definitive agreement that will guide our relationship into the future,” continued Mills. “I look forward with great anticipation to our promising future with Piedmont Healthcare.”
R. Timothy Stack, president and CEO of Piedmont Healthcare added, “We look forward to sharing our experience with Henry Medical Center and the Henry County community – a strong spirit of collaboration, the highest quality of care, and our solid track record and success in running community hospitals.”