Atlanta Medical Center and financially ailing South Fulton Medical Center announced Wednesday that they will seek state permission to consolidate the two hospitals.
Both hospitals are owned by the Tenet Healthcare Corp.
The 338-bed South Fulton Medical Center in East Point has been losing millions of dollars annually in recent years, according to reports filed with the state.
"It is a strategy that hopefully will ensure the long-term stability and financial viability of South Fulton Medical Center," said William T. Moore, chief executive officer of Atlanta Medical Center.
If approved, the East Point hospital would become Atlanta Medical Center -- South Campus.
Consolidations in Atlanta's hospital market are now common, as stand-alone facilities find it difficult to survive in today's health care marketplace.
South Fulton's financial struggles aren't new. The facility was in bankruptcy when Tenet bought it in 2001. Moore said Tenet invested in the facility and that its financial performance improved until the recession hit. The change would allow the hospitals to save money by consolidating some administrative functions and by centralizing some clinical services, Moore said.
"We looked at different options because we want to continue to be able to serve that community -- the East Point, College Park and Hapeville communities -- and we think that this is the best alternative," Moore said. "We think that by doing this, we can build on each other's strengths."
Atlanta Medical Center is a 460-bed academic medical center with a Level 1 trauma center in downtown Atlanta. A two-campus Atlanta Medical Center would become one of the largest hospitals in the state with 798 beds.
Atlanta Medical Center
Beds: 460
Location: Downtown Atlanta
Owner: Tenet Healthcare Corp.
Services: Full-service academic medical center with a Level 1 trauma center. Recognized for its women's services program and its strong performance for treating stroke patients.
South Fulton Medical Center
Beds: 338
Location: East Point
Owner: Tenet Healthcare Corp.
Services: Community hospital with a newly renovated Emergency Department and services that include a surgery center, labor and delivery, and a range of outpatient services.
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