Emory, WellStar Health plan hospital merger

Deal brings together the community-based focus of WellStar with Emory's prestige in academic medicine.

The WellStar Health System plans to merge with Emory Healthcare, the providers announced this week, in a deal that would create a major unified health network in Georgia.

Emory Healthcare, which is owned by Atlanta’s Emory University, said the two providers are in formal discussions, which both boards of directors agreed to extend for another 45 days.

If approved, it would be one of the largest hospital mergers so far in 2015.

[Also: Tracking 2015 mergers and acquisitions]

“This is a tremendous opportunity to create an unparalleled new healthcare system,” said John Morgan, chair of the Emory University Board of Trustees, in a statement. “Combining the significant resources, talent, and expertise of Emory Healthcare and WellStar Health System would bring together two highly respected institutions that together are well known for their commitment to patient care, education, discovery, and innovation.”

The deal hints at a broader population health initiative on the part of the systems, which said the merger brings together the community-based focus of WellStar with Emory’s prestige in academic medicine.

[Also: M&A strong in 2014]

The news comes as more analysts predict a busy year for hospital mergers, especially nonprofit health, where shifts towards population health and value-based care are putting strain on finances.

According to consulting firm Kaufman Hall, 80 of the 95 hospital acquisitions in 2014 included nonprofit hospitals.

Twitter: @HenryPowderly