Houston Healthcare, Emory Healthcare discuss possible partnership at town hall meeting

WARNER ROBINS – The Georgia Attorney General’s Office hosted a town hall meeting discussing a possible partnership between Houston Healthcare and Emory Healthcare on Thursday, April 10 at Central Georgia Technical College.

In August 2024, the two organizations announced they signed a non-binding Letter of Intent for Houston Healthcare to join Emory Healthcare, according to a press release. 

Representatives of Houston Healthcare and Emory Healthcare were present at the meeting, including Houston Healthcare’s Board of Trustees Chair and President of CGTC Ivan Allen and President and Houston Healthcare CEO Charles Briscoe. 

Allen explained the origins of Houston Healthcare. In 1957, The hospital originally had 50 beds. Today, there are two hospitals in the Houston Healthcare system: Warner Robins and Perry. It has been a not-for-profit hospital in the community for decades.

Allen clarifies they are not selling the hospital system and no price to be paid in the transaction. He said the transaction would take the form of a membership transaction with certain commitments provided by Emory. Allen shared this transaction is anticipated to result in substantial benefits to the community. 

“Houston Healthcare proposes to enter into this transaction and we are here today because we as the members of the board know that healthcare continues to change rapidly. As a hospital system, we have seen good years and, unfortunately, we have seen bad years,” he said. 

Allen explained Houston Healthcare does not carry long-term debt and has a balance sheet reflecting efforts to build up its cash reserves. This has helped sustain the operations of the system over the last several years.

He also shared Houston Healthcare is not unique in this situation as the delivery of healthcare continues to be a challenge for community hospitals throughout the country.

“To best serve the community, the hospital must be positioned to be able to make continuing investments in important technologies, staff, equipment and in other investments that are needed in the community and in the hospital,” he said. “Like many standalone community hospitals, we have arrived at a point where we must join with a partner in order to retain viability and longevity of this system.”

Allen shared after evaluating the realities of their day to day operations, remaining independent would no longer be feasible. He said they determined a relationship with Emory Healthcare was the best option that would meet their current goals and objectives. 

The Houston Healthcare system has been aware of challenges in community healthcare for years, according to Allen. In August of 2017, the board began to investigate the need for a strategic partner. 

Allen said the board is confident in their conclusion and confident the proposed transaction with Emory will be good for the community and the Houston Healthcare system. 

He further shared that if Houston Healthcare’s Board of Trustees were not doing this transaction with Emory, their options would be very limited. Out of 28 potential partners, only two accepted including Emory. If they went to the market again and considered a partner other than Emory, there would be increased pressure on their service line, employees and their fundamental ability to continue to provide the same level of care. 

Briscoe explained Emory’s role in the partnership. He said Emory will become the sole member of the Houston Healthcare system. By becoming a sole member, Emory will control the healthcare system and have the ability and authority to take certain actions. He reiterated there is no associated purchase price and no cash consideration to be provided to any party as a result of the transaction.

“Overall, the commitments from this transaction will enhance the programs and services that Houston Healthcare can provide,” he said.

Emory’s commitment to Houston Healthcare is the installation of an electronic health record system. Briscoe explained there are two primary systems used by health systems and neither are available to small community hospitals and health systems like Houston Healthcare.

He said as part of the transaction, Houston Healthcare will gain access to Emory’s “Epic” systems. Briscoe explained Epic is one of the most widely used Electronic Health Record systems in the country and serves 250 million patients. It will help improve quality and operational efficiency.

Emory will commit to implementing Epic at both hospitals, the inventory surgery center, and the employed medical practices. 

“This is an important commitment by Emory Healthcare and a commitment that once fulfilled will make a material positive impact to the health system,” he said.

Briscoe said following closing, Houston Healthcare will continue two full service hospitals. He assures they will continue to provide the same services and service lines. He also said Emory will ensure Houston Healthcare will continue its commitment to providing care to the disadvantaged, indigent, uninsured and underinsured patients. 

“Our team members are excited about what day one will bring to our community,” he said.

Briscoe shared Houston Healthcare employees are excited and supportive of the transaction. He said they have had numerous opportunities to communicate and take questions from employees. The medical staff and community have been supportive of the proposed transaction, according to Briscoe. He also shared the closing of the transaction is not anticipated to result in any reductions in staff or planned layoffs.

Heather Dexter, Regional Hospital President for Emory Healthcare, explained their healthcare system during the meeting. 

Emory Healthcare is a not for profit organization based in Atlanta, part of the Emory University system. Dexter said they have always been dedicated to serving the state by providing highly specialized tertiary and quaternary services. She shared a lot of those services can’t be found in every community, causing them to be the recipient of many patients across the state. 

“We believe that whenever possible, healthcare should be delivered close to home,” she said. “We’re always looking for opportunities to how can we better support the healthcare system of the entire state of Georgia by partnering to provide high quality care in both metro Atlanta and the communities beyond.” 

Dexter said Emory is excited to partner with Houston Healthcare. She believes they can help strengthen them and the services they provide. She explained the Epic system will give clinicians the ability to access all the information and providers providing their care. Dexter said when patients return home, they can ensure continuity of care.

“We see Houston Healthcare being able to serve as a regional hub to central Georgia and communities to the south of Houston [County] as well,” she said

Dexter said Emory’s current policies and procedures are favorable to providing healthcare for charity care and the indigent community, continuing Houston Healthcare’s tradition. Emory participates in Medicare, Medicaid and Tricare.

Public Comments

During the Public Hearing, board of trustees members, medical staff, and local leaders spoke in support of the transaction with Emory Healthcare. 

The first to speak up was Mohammad Al-Shroof, a primary care physician and board member at Houston Healthcare. He said as a physician, the transaction is vital for patients in the community. Al-Shroof hopes the transaction will be approved as soon as possible.

He shared Emory will bring long-term stability to their medical staff, employees and service lines. 

“It’s not a secret that over the last couple of years, the medical service lines have been suffering. [It] has been coming to a point where we have to cut back or compromise some of our service lines,” he said. “Hopefully, with Emory coming and with the commitments made today that these service lines can expand and become better and stronger.”

Emergency Department Staff Nurse at Houston Healthcare of Warner Robins, Erica Fall, also spoke in support of the Emory partnership. She said she cares deeply about the healthcare’s future and a desire to see a better future for the facility. Fall also believes Emory will provide a specialized level of care in Warner Robins. 

“As our county continues to grow, so do the demands of our Emergency Department. We face increasing patient acuity, rising volumes and a need for expanded resources,” she said. “I love this community and I love what I do. I believe this partnership has the potential to build a more resilient and responsive healthcare system; one that truly meets the needs of our growing community.”

Warner Robins Mayor LaRhonda Patrick and Perry Mayor Randall Walker were among the local leaders who spoke in support. Patrick believes the decision on the proposed transaction is critical to the health, safety and future of the community. 

The main reason she supports the transaction is because it will support local access to care. Patrick believes the community deserves the best care in their home.

She believes Emory will bring an innovative investment to the community. She also shared it will enhance infrastructure and build the healthcare workforce. 

Patrick urges the Attorney General’s office to approve the transaction because she believes it will save lives and create new opportunities.

“This partnership will open doors for our community, increasing our workforce, which has a nationwide shortage across the country,” she said. “The top tier academic and teaching healthcare system will open doors for training, education and workforce development; giving our young people a reason to stay and serve right here at home while attracting great new talent of all ages in all areas in their career right here.”

Walker believes the partnership is important for the community’s future as the city of Perry grows and residents depend on its hospital. 

He said the partnership will offer access to modern and high quality care for families, which is critical for the community’s continued growth. He also encouraged the Attorney General’s office to approve the transaction.

“As we witness many rural hospitals struggling to survive and provide service, I truly believe this partnership will help us be sustainable and it will put stability into our system, which will benefit our entire region,” he said.

The transaction will be approved or denied by Attorney General Christopher Carr. The Attorney General’s office will begin drafting a report, available to the public by mid-May.