An agreement has finally been made public that Augusta University Health System and Wellstar Health System will merge into Wellstar MCG Health.
The office of Georgia Attorney General Chris Carr received the notice on Friday, beginning a legal review and subsequent public hearings.
The 89 documents included in the notice to the Attorney General’s Office detail what the transfer means, including a cover letter outlining the key points of the contract.
Resolution:See USG Board Resolution on Merger of Wellstar and AU Health.
Cheers and mockery:Some welcome the AU Health-Wellstar merger, others fear it
Wellstar Spending and Care Commitment
The cover letter states that the transaction is not a sale. Wellstar will be AU Health’s “Only Corporate Member”. The deal comes with a hefty financial commitment from Wellstar of $797 million over 10 years. Also this:
- Construction of Columbia County Hospital and relocation of Columbia County Surgical Center.
- Implement the Epic Electronic Health Record System (the state contributed $105 million earlier this year).
- During the first two years of the contract, $31 million per year was spent on the AU Medical Center campus. and,
- Between years 3 and 10 of the contract, $139 million was spent on capital projects for the AU Medical Center in Augusta.
About a quarter of spending depends on performance. That means Wellstar could defer his $201 million spending if the AU Health system isn’t operating at his 2% operating margin.
During the first ten years of the agreement, Wellstar is committed to operating AUMC and the new Columbia County Hospital as a full-service acute care hospital. Wellstar also commits AUMC and Roosevelt Warm Springs Rehabilitation & Specialty Hospitals to continue to provide clinical core services at their current levels. For AUMC, these include emergency rooms, Level I Adult Trauma and Level II Pediatric Trauma Services, Georgia Children’s Hospital, Oncology Services, and others.
They will also continue AUMC’s residency and fellowship programs at their current levels and AU Health’s current Poor People and Charity Policies for at least one year before transitioning to related Wellstar policies.
Wellstar and AU Health will establish a community health campus for Medical College of Georgia students at Wellstar Kennestone Regional Medical Center in Marietta.
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40-year contract as part of the deal
This document provides an overview of the Master Affiliation Agreement, a 40-year agreement between Wellstar and the University of Georgia Board of Governors, which oversees the AU Health System. The MAA is automatically extended by Wellstar for another 40 years. Contracts can only be terminated by mutual agreement, by finding the contract to be unlawful, or by breach of contract “by one party causing long-term business or economic damage to the other party as well.”
The facility, currently operated by AU Health, will continue to be leased by Wellstar from the Board for a nominal rent of $10 per year. Upon completion, the assets of Columbia County Hospital will be transferred to the board and leased back to Wellstar.
During the first ten years of the agreement, the Board will have priority in the event Wellstar seeks to transfer or sell control of the new Wellstar MCG Health System.
The Board may also appoint members of the AU Health System Board to the Wellstar Board for the duration of the Agreement. Also, as a member of the Wellstar Board during his first two years of the contract, he may also nominate her second member of the AUHS Board. Neither candidate may be a member of the Board of Trustees.
Wellstar undertakes to assume a portion of AU Health’s indebtedness and undertakes to endeavor not to breach the terms of the indebtedness in the meantime.
Other documents listed in the cover letter include an agreement authorizing AUMC to continue as the primary teaching hospital of the Medical College of Georgia, an agreement authorizing MCG faculty to provide medical services through Wellstar, Columbia Includes county leases and development agreements. hospital. The attached Development Agreement; however, is incomplete and consists of one page that reads “Provided Upon Completion”.
Summary of Previous USG Approvals
The Board voted on March 31 and approved 14 documents outlining the Agreement. His Sonny Perdue, or his office of USG Prime Minister, was empowered by the Regent to finalize the agreement, and upon approval by the Attorney General, the Regent approved the agreement.
The regency meeting on 31 March was specially convened to consider and vote on the proposed amalgamation, and the meeting had no formal agenda, only a notice of meeting. The vote took place at 8:00 a.m. Hours later, Perdue, Wellstar executives, Augusta University administrators and even his Governor Brian Kemp were briefing the news media on the deal.
Perdue said at his next press conference, “We plan to submit these agreements early in the week so that the Attorney General’s Office will do things legally for the benefit of all Georgians.” I can confirm that,” he said. Voting March 31st.