New documents offer details about AU Health-Wellstar merger
AUGUSTA, Ga. (WRDW/WAGT) - We’re getting a look at the terms of Augusta University Health’s merger with Wellstar.
The merger was announced weeks ago, and required legal papers outlining the merger were filed a few days ago with the Georgia Attorney General’s Office.
MORE FROM NEWS 12:
- Get a sneak peek at new Columbia County hospital
- AU gets federal funds to boost telehealth program
- Georgia Cancer Center mobile lab visits AR Johnson students
The office released those documents Wednesday, shedding light on the merger.
In the merger, Wellstar will become the sole corporate member of AU Health and will have a 40-year contract with the University System of Georgia Board of Regents.
READ THE DOCUMENTS:
Wellstar will spend nearly $800 million with the deal over the next 10 years, with millions used to build the new Columbia County hospital and move the current surgery center.
Also, $200 million will be used for the main Augusta University campus.
Wellstar will also switch over to the new state electronic health records system.
In the first 10 years of the deal, regents have the right of first refusal if Wellstar tries to sell or transfer its stake in the Medical College of Georgia. That means the university system gets the first chance at acquiring the assets.
AU Health wanted the merger after losing $63 million overall since 2017, according to audits. The health system has been looking for a partner like Wellstar since 2019.
So this deal looks like it will help AU with its losses.
The name Wellstar may sound familiar. The Marietta-based health care provider was the owner of Atlanta Medical Center, which had one of the few Level 1 trauma centers in Georgia before Wellstar suddenly closed the hospital.
Copyright 2023 WRDW/WAGT. All rights reserved.