Georgia Attorney General approves Augusta University Health and Wellstar merger

The merger between Wellstar and Augusta University Health has been approved by the Office of the Attorney General of Georgia.

"The report concluded the pending transaction is consistent with the purposes set out in the law, including that the community will receive an enforceable commitment for fair and reasonable community benefits, there are no impermissible conflicts of interest and that there are sufficient safeguards to assure access to affordable care moving forward, including Wellstar’s commitment to provide care to the uninsured and to improve healthcare for Georgians," read a join statement from leaders of Wellstar, AU Health and the University System of Georgia released late Thursday.

More: Public, professionals comment on AU Health and Wellstar merger at Attorney General hearing

Also: Pause on debt collection, spending requirements included in comments on AU-Wellstar merger

The 16-page document from the attorney general's office summarizes the history of the deal and the hearing process before turning to whether the deal complies with the Hospital Acquisition Act, which outlines 13 factors that a merger or sale must meet.

The findings group these factors into four catagories:

• Due diligence by the seller

• Conflicts of interest

• Value of the hospital assets

• Charitable purpose of the transaction

On all four points, Senior Assistant Attorney General Alkesh B. Patel, who held the hearing, found "the public record in this matter discloses that the proposed transaction is appropriate."

The report comes almost a month after Patel held a hearing in Augusta on the proposed merger, which would see Wellstar step in as the sole corporate member of AU Health. The transaction is not a sale, but Wellstar has made a number of contractual agreements to invest up to $797 million over 10 years in existing facilities as well as the new hospital in Columbia County for which AU Health holds a certificate of need.

While the transaction is not final, the positive report of findings is an important step toward completing the deal. The joint statement says that the parties hope to finalize the deal this summer, and are working on a smooth transition for patient care and insurance coverage.

Most speakers at the hearing were in favor of the deal, although some written comments submitted as part of the record were more critical. Several state elected officials and activists expressed concern over Wellstar taking on another hospital system after they had closed the Atlanta Medical Center last year. U.S. Sen. Raphael Warnock (D-Georgia) also submitted a letter with a number of suggestions on additional safeguards.

Advocates for the deal have said the merger will provide benefits to patients throughout the Augusta area and across the state, including through expanded opportunities for students at the Medical College of Georgia.

"Wellstar, AUHS and Augusta University share a mission to create a healthcare future for Georgians and solve healthcare challenges across the state," Candice L. Saunders, president and CEO of Wellstar, said at the hearing.

This article originally appeared on Augusta Chronicle: Wellstar, AU Health merger gets approval from AG review