AdventHealth has signed a definitive agreement to purchase Redmond Regional Medical Center from HCA Healthcare.
The $635 million agreement includes the 230-bed facility as well as the Rome hospital’s related businesses, physician clinic operations, outpatient services and all issued and outstanding equity interests.
AdventHealth, a Christian-based hospital system headquartered in Altamonte Springs, Florida, currently has 45 hospital campuses around the country, including in Gordon and Murray counties.
“We are excited about the opportunity to offer our unique promise of whole-person care and look forward to working with and caring for the team members, physicians, and residents of Northwest Georgia and the surrounding area,” said Terry Shaw, president/CEO of AdventHealth, in a statement. “By affiliating with Redmond Regional Medical Center, we will be well positioned to continue providing excellent care in the community.”
This is the fifth hospital that HCA Healthcare has announced it will sell in Georgia recently — the others are in Macon and metro-Atlanta.
The transaction is anticipated to be complete by Aug. 31, pending regulatory approval. At this point it’s unclear what regulatory approvals the sale will require.
In the meantime, AdventHealth and HCA Healthcare are working on the transition period, Redmond CEO John Quinlivan said.
He also said he expects that the hospital system’s current relationship with Harbin Clinic will remain the same.
“We’ve emphasized to our staff that, operationally, nothing changes,” Quinlivan said. “I know Advent knows how important Harbin is, just like HCA and Redmond does. We’re excited about this; we think this is going to be positive for this community.”
If that’s the case, it won’t be the first time Harbin has partnered with AdventHealth.
The Rome-based physician group’s cardiologists have been providing cardiac services in the clinic’s new Calhoun heart facility as well as out of AdventHealth Gordon hospital.
“As Harbin Clinic continues to grow and expand our services to meet the needs of those seeking healthcare in our area, our mission remains unchanged,” said Harbin CEO Kenna Stock. “We look forward to the opportunity to continue working collaboratively with healthcare systems in our market to deliver complete, best-in-class care throughout Northwest Georgia.”
The deal between AdventHealth and Redmond is the second large hospital deal expected to come to fruition in Floyd County this year.
Atrium Health’s pending merger with Floyd Medical Center is expected to be finalized in June or early July. It is currently under review by the Georgia attorney general’s office.
Floyd Medical Center, alongside Polk Medical Center and the company’s hospital in Cherokee County, Alabama, are being purchased by North Carolina-based Atrium Health in a membership substitution agreement. That deal has the potential to pump in excess of $650 million into the Floyd system over the next 11 years.
However, if the Redmond deal comes to fruition, there is the potential for much of the hospital’s property to be removed from the county’s tax rolls. That would translate to a significant cut in funding for both city and county schools.
AdventHealth, like Floyd Medical Center and AtriumHealth, is a nonprofit health system. That designation could mean that Floyd County, and the Rome City Schools system, will take a hit on tax revenue as a result of any changes.
Floyd County Tax Commissioner Kevin Payne said Redmond currently pays $588,000 a year in taxes on personal property including equipment, and another $790,000 on property and buildings. For reference, properties listed under Hospital Authority of Floyd County or Floyd Healthcare Management paid a total of $30,242 in taxes.
AdventHealth Gordon currently shows no record of local property tax paid, according to Gordon County Tax Commissioner Scott Clements.