'Great day for Augusta': Augusta University and Wellstar deal signed and finalized

It is official. As of Wednesday morning, Wellstar Health System and Augusta University Health System are unified after months of negotiations.

"This is a great day for Augusta, a great day for Augusta University. It's a great day for the Wellstar-MCG Health and it's a great day for the people of Georgia," said Augusta University President Brooks Keel before the ceremonial signing.

The transaction, formalized in a signing ceremony on the downtown campus for AU Health, will see Wellstar step in as the sole corporate member of AU Health. Banners with the new Wellstar-MCG Health name are already going up, recognizing the Medical College of Georgia's role in the academic health system.

Chancellor Sonny Perdue told the Augusta Chronicle that the new $797 million deal with benefit not only the Augusta region, but the entire state.

"This only is going to go to enhance the brand of MCG, which is powerful across the state and the region, and expand that in modern clinical environments across the state of Georgia, through modern technology of telemedicine, healthcare, and in ways that I don't even think we can foretell just yet," he said.

Keel said that the changes will improve healthcare locally.

"As someone who lives in this area, I'm also excited about what this partnership is going to do for the hospital, and the ability of our hospital here in Augusta to continue to expand and extend its opportunities for providing outstanding healthcare for the people of the CSRA," Keel told the Chronicle.

As for Wellstar, President and CEO Candice L. Saunders says that the merger will make both organizations stronger, and has spoken about the number of shared commitments between the two institutions, including to people and communities.

"Part of that, too, is that we are always trying to bring the most advanced clinical care to our communities, and through this partnership, will now be able to add that innovative academic teaching models and lifesaving research to all corners of the state," Saunders told the Chronicle.

Impact of the deal: AU Health workers could see smooth shift to Wellstar, but some changes coming. See the details.

A number of officials attended to mark the signing, including Congressional Rep. Rick Allen, members of the Augusta delegation of the state legislature and local county government.

"Great day, great partnership for the city of Augusta," Augusta Mayor Garnett Johnson told the Chronicle after the ceremony. "My colleagues in Columbia County are excited about the opportunity ... excited about where this partnership is going to lead and how it's going to benefit our community."

Columbia County Board of Commissioners Chair Doug Duncan agreed.

"Glad this day has finally come," he said. "It's truly a partnership between not only Augusta University, Wellstar and Columbia County but the Augusta Community as well."

What does it mean for you?

Saunders said that patients will not see any difference in their coverage as they come in for care.

"People from both of our systems will continue to access care as (they) currently do," Saunders said.

If there is any noticeable change, Keel said, it will be for the better.

"What I think patients can expect to see over the coming months is a much improved and more efficient system of getting in the door where they can actually see their physician," he said.

What does the deal mean for AU Health?

AU Health has been struggling in recent years, running negative balances and seeing their bond rating slide.

"Wellstar took their time to do their due diligence to look at the future potential of the relationship there. We're grateful they did," Purdue told the Chronicle. That included finding a way to address some of the financial challenges AU Health was facing. "... I very much appreciate their willingness to dig down into the opportunities and come up with a proposal that makes a lot of sense for us here."

According to the legal documents outlining the deal, Wellstar has committed to:

• Construction of the Columbia County Hospital and moving the Surgery Center of Columbia County;

• Implementing the Epic Electronic Health Record System (which the state contributed $105 million to earlier this year);

• $31 million a year for the first two years of the agreement spent at the AU Medical Center Campus; and,

• $139 million spent on capital projects at the AU Medical Center in Augusta in years three through 10 of the agreement.

In late July the deal passed a routine legal review by the Office of the Attorney General after a process that included both a public hearing and written comments. Almost all the comments on the deal from local elected officials, nurses, doctors, faculty, researchers were supportive.

Those who have expressed caution about the agreement have done so less on the specifics of the merger itself than on Wellstar's track record with the Atlanta Medical Center and Atlanta Medical Center-South, two facilities closed by Wellstar last year that served served largely Black patients. Wellstar has outlined its position on the matter in a website, maintaining that the financial losses at AMC were too great to be sustained.

Big bond: City of Augusta approves $275 million bond issuance to benefit AU Health partner Wellstar

What does the deal mean for MCG?

For MCG, the merger will also create a new clinical campus for medical students to get hands-on experience at the Wellstar Kennestone Hospital in Marietta. Another MCG clinical campus at Georgia Southern will add a full, four-year satellite medical school for 40 students next year, alongside the main campus in Augusta and one in Athens.

"I think the relationship with Wellstar gives us the financial sustainability to do things like a partnership in Savannah," Purdue told the Chronicle.

One major change for MCG faculty who practice in AU Health is the dissolving of their practice group, Augusta University Medical Associates. In June Keel wrote to members of AUMA notifying them that a number of benefits they received were ending at the time and even more would end just before the deal was finalized.

"Our physicians now move more towards the Wellstar benefits packages and what they provide, and that required them to sign a faculty agreement with Wellstar, and we had virtually 100% of our faculty sign that agreement," Keel told the Chronicle.

This article originally appeared on Augusta Chronicle: AU Health, Wellstar sign agreement months in the making