Health Sciences Update
  April 7, 2010

Fred Sanfilippo
Fred Sanfilippo,

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Recent developments regarding hospital affiliations

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  Recent developments regarding hospital affiliations

As you may be aware, a number of health care affiliations in Atlanta have been under discussion in recent weeks. Emory Healthcare CEO John Fox has been on point for Emory and sent the message below to Emory Healthcare staff earlier this afternoon. I wanted you to be aware of these developments.

Fred Sanfilippo, MD, PhD
Executive VP for Health Affairs
Chairman, Emory Healthcare

From John Fox:

I want to keep you apprised of recent developments regarding St. Joseph's. As you know, Emory Healthcare and other local and national health care organizations have been in discussions with St. Joseph's Health System about possible affiliation transactions.
Although these discussions had progressed, at the end of the day, we were told that St. Joseph's parent company, Catholic Health East, determined that a successful partner for St. Joseph's must effectively contribute "tangible assets" to offset the exchange for a controlling interest in St. Joseph's. We estimate that the amount of money or some other tangible asset necessary to meet that condition is between $150-$200 million. Given our other commitments, Emory Healthcare was not willing to make such an agreement.
Just this week, we learned that Piedmont Hospital and St. Joseph's have agreed to enter into a 90-day, non-binding letter of intent to affiliate, which will likely be covered in the media in the coming days. Because the agreement with Piedmont is non-binding, St. Joseph's has asked us to remain open to future discussions, though at present such a transaction seems unlikely. Many thanks to all the EHC leaders who have played a role in advising us on this process during the course of the negotiations.
Even with the potential affiliation of St. Joseph's and Piedmont, Emory Healthcare, the only academic medical center in Atlanta, will continue to maintain a substantial market share in the metro Atlanta area. Our focus on Job No. 1—to take care of our patients and their families—continues to be imperative in positioning our institution for continued success.  
Thank you.


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