Piedmont aims to expand after Wellstar closure

Piedmont Atlanta Hospital plans to add 130 beds and hire more than 300 employees to address increased capacity pressures in the wake of Wellstar Atlanta Medical Center's 2022 closure, according to a certificate of need application filed April 1. 

"This project is necessary in order to meet the community need that was caused by the closure of WellStar Atlanta Medical Center and alleviate capacity constraints caused by increasing inpatient utilization," Sheryl Klink, chief financial officer, said in the application, which was filed with the Georgia Department of Community Health. 

"This will reduce operational inefficiencies and improve the quality and accessibility of care delivery across all levels of care at PAH."

Marietta, Ga.-based Wellstar closed Atlanta Medical Center in the fall of 2022, leaving other hospitals and clinics throughout Metro Atlanta operating on stretched resources. Wellstar has said it invested hundreds of millions of dollars into the facility and pursued multiple efforts to find a partner or buyer and prevent the facility's closure. 

Piedmont's expansion would increase the total number of beds from 643 to 773. The project would not involve new construction or costs, since the Atlanta-based health system was previously approved for a new, 408-bed patient tower. Plans for the tower originally included 114 new beds and 294 relocated beds. Under the new proposal, only 164 beds would be relocated to the tower, while 130 beds would be retained in the main hospital. Up to 130 beds would also be added to the tower. 

In the application, Piedmont said there are no existing alternatives to the project, noting that Atlanta Medical Center had over 800 licensed beds. "By only adding 130 beds, PAH only captures a portion of those beds that have been closed by WAMC," Ms. Klink wrote. 

The health system anticipates adding more than 300 full-time employees to support the expansion, including 197 registered nurses. Ms. Klink noted the proposal represents "the most cost-effective approach available" for the hospital to meet the needs of residents in its service area. Piedmont anticipates about $1 million in net revenues in the first year after the expansion, and $1.1 million in the second year. 



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