Major Hospital Alliance in Georgia

The merger and acquisition rage continues throughout our country.  Our Health Care Services Group has witnessed this firsthand, providing merger and acquisition services for the past number of years for both hospital systems and physician group organizations throughout the northeast.  While this trend has had a large number of traditional takeover agreements, now it has take a slightly different route with a very recent and very large merge/alliance that  has taken place down south in the state of Georgia.

As reported by Modern Healthcare, 23 hospitals located in the central and southern sections of Georgia have agreed to form an alliance as a not-for-profit limited liability corporation (LLC) named Stratus Healthcare.  This alliance now allows the former stand-alone organizations and hospital systems to combine their resources while servicing a large patient population.  Stratus will focus initially on developing networks for primary and specialty care, and create hospitalist and emergency medicine programs.  These programs will allow the members to create both clinical guidelines and transfer arrangements, share best practices, and also share information through telemedicine.

Stratus Healthcare’s formation also allows its many providers to collaborate on care, all the while allowing the providers to maintain their autonomy and independence.

Stratus HealthCare will be governed by an executive panel made up of the CEOs from the previous medical centers, again, allowing for the sharing and coordination of information and resources. These CEOs utilized a non-equity partnership as the basis of the formation, allowing for a quicker route to working together.
This southern alliance is another example of the continued growth of similar alliances throughout the country.  The goals of these alliances are to form less restrictive partnerships, take advantage of the benefits of size and scale while allowing the individual entities to not cede control or lose their autonomy.


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