The process of partnering with or acquiring another business can be complex. Working out all the details of the partnership or mergers and acquisitions nuances, including financials and contracts under deadline can present unique challenges to any business. Atlanta readers may have already learned of an agreement reached between Southern Regional Medical Center and Emory Healthcare which will likely benefit both entities once the details are ironed out.
Southern Regional is located in the southern portion of metro Atlanta. Having faced serious financial decline, the company has been considering that managers said might include a joint venture or sale since last summer. Emory Healthcare, apparently seeing a potentially golden opportunity for expansion, has entered into a partnership arrangement with Southern Regional, adding the hospital to Emory’s existing healthcare network of four hospitals.
Reports say that under the new relationship, Emory will provide operational and financial assistance to Southern Regional. Southern Regional will be responsible for paying Emory a management fee the amount of which has not been disclosed. Analysts indicate that by bringing Southern Regional under the Emery umbrella, Emery will have an edge in its competition with Piedmont Healthcare. The partnership is slated to begin on Oct. 1.
When businesses consider mergers and acquisitions or other forms of partnership arrangements, there are many things that they must consider to be sure the law is adhered to. Achieving the desired outcome can take adept negotiation, time and skill. When issues arise, having the right support system in place, including experienced legal counsel, can be critical to ultimate success. In this instance, it appears that both business entities took advantage of an opportunity that could well result in furthering the business plan of each company while continuing to provide valuable healthcare services in the greater Atlanta area.
Source: Atlanta Business Chronicle, “Emory, Southern Regional reach deal,” Urvaksh Karkaria, Sept. 17, 2012