What can you tell me about Atrium Health?
Atrium Health, formerly Carolinas HealthCare System, is one of the nation’s leading and most innovative health care organizations. Headquartered in Charlotte, North Carolina, it includes an integrated network of 39 hospitals in the Carolinas and Georgia with more than 65,000 employees, including over 3,700 physicians.
Atrium Health has a Level I trauma center at Carolinas Medical Center and provides a full spectrum of health care and wellness programs throughout the Southeast region. Its diverse network of care locations includes academic medical centers, hospitals, freestanding emergency departments, physician practices, surgical and rehabilitation centers, home health agencies, nursing homes and behavioral health centers, as well as hospice and palliative care services. Atrium Health works to enhance the overall health and well-being of its communities through high-quality patient care, education and research programs, and numerous collaborative partnerships and initiatives.
Why is Floyd choosing to partner with another organization?
Our partnership with Atrium Health will help shape the future of Floyd and improve our ability to grow, adapt and better care for our patients and the communities we serve. Hospitals and health systems across the country are facing increased pressures and competition. While we have been able to navigate changes successfully to date, we will continue to face increasing challenges.
For two years, our board and executive team have carefully evaluated options to help continue Floyd’s success and create a more stable health provider for our region that’s better able to weather these headwinds. Atrium Health was selected because of its mission, its commitment to all patients, its industry-leading best practices, its success and vision, and its desire to invest in and help further Floyd, while also preserving our ability to make local decisions.
How will the community benefit from this partnership?
Our partnership will help ensure that the community can count on Floyd as their health care provider for generations to come by providing additional investment and resources. While Floyd is the region’s largest employer and already delivers tremendous community benefit, with Atrium Health we will have more resources and be able to make an even bigger impact in the communities we serve. Atrium Health has pledged to invest $650 million in capital for Floyd over the next 11 years to enhance capabilities, skills and talent, facilities and technology.
As part of the combination and capital commitment, Atrium Health will invest $80 million in support of Floyd Healthcare Foundation. Founded in 1979 by a small group of visionary local citizens, Floyd Healthcare Foundation has become an integral part of the Floyd health system, supporting health-related programs in communities served by Floyd. The endowment will provide additional resources to creatively impact health care disparities in the region.
Is Floyd having to make this change because of financial issues?
Today, Floyd is a stable health care provider. In fact, our fiscal year 2019 operating margin of 3.5% is more than double the industry median of 1.7%.
However, our industry is changing. Like most health systems, we’re experiencing pressures and increased competition, and these challenges will continue to grow in the future. We must look to the future, and we must make the necessary moves to grow and thrive.
Why did you choose Atrium Health?
For more than two years, our board and executive team carefully considered potential partners. During this confidential process, we looked at potential partners in Georgia and outside of Georgia. Atrium Health was selected because of its mission, its commitment to all patients, its industry-leading best practices, its success and vision, and its desire to invest in and help further Floyd, while also preserving our ability to make local decisions.
Who else did you consider?
We are unable to share the names of other potential partners. Our process to evaluate potential partners was confidential and all parties involved were required to sign non-disclosure agreements. What we can share is that it was an extensive and thoughtful process, evaluating different systems from within Georgia and from the multi-state region.