Habersham Medical Center & Northeast Georgia Health System Agree to Purchase Plan

Northeast Georgia Health System has reached an agreement to acquire Habersham Medical Center in Demorest.

In a press release issued Wednesday by the Northeast Georgia Health System, Habersham Medical Center and Northeast Georgia Health System have agreed on a five-year plan intended to transform Habersham Medical Center’s campus – ultimately making the hospital part of Northeast Georgia Medical Center and lessen the debt burden on Habersham County’s taxpayers.

“Many people in Habersham County have asked for a deal like this for years, and many before us have tried to make it happen,” says Lynn Boggs, HMC’s chief executive officer. “We’re thrilled to deliver this agreement, which can lead to security and stability for this community’s local hospital. We are truly working together for healthier tomorrows.”

The Habersham County Commission unanimously approved the five-year plan at a meeting earlier this week.

“This is a win-win for the future of our community, and it has taken creative thinking and innovative solutions by all parties involved to create this positive path forward,” says Stacy Hall, chairman of the Habersham County Commission. “This puts power back in the hands of the people of Habersham County. By utilizing HMC’s services, they will make both the hospital and county financially stronger.”

The five-year plan calls for Northeast Georgia Healty System to invest $3 million annually to help Habersham Medical Center fund capital projects to enhance and expand services for the hospital in Demorest.

“We have a vision for the future of health care in Habersham County, which in turn impacts how care is delivered across our entire region,” says Carol Burrell, president and CEO of NGHS. “This plan will lead to updated facilities, improved services, advanced technology and better coordination for patients – closer to home.”

During that five-year period, any dollars Habersham Medical Center generates beyond 20 days of cash-on-hand to support operations would be transferred to a fund.

At the end of the agreement term, the Hospital Authority of Habersham County will apply the fund balance to the hospital’s bond debt.

Under the agreement, during the five years of the agreement, the leadership and staff of Habersham Medical Center will continue to operate the facility under the direction of the Hospital Authority of Habersham County.

At the end of the agreement term, Northeast Georgia Health System will have the option to acquire HMC – which, the press release said, is the intended outcome.

Emergency and inpatient physicians from Northeast Georgia Medical Center campuses will continue to provide coverage to Habersham Medical Center as they have since July 1.

Hospital leaders anticipate the plan will officially begin in late November, following a community forum for the public to learn more about the agreement and have the opportunity to ask questions.