Independent analysts said the proposed merger between Augusta, Ga.-based University Hospital and Atlanta-based Piedmont Healthcare is a good deal, even though the COVID-19 pandemic has made the healthcare environment "very volatile," The Augusta Chronicle reported Dec. 15.
At the public hearing Dec. 14 held by the state's attorney general, all speakers were in favor of the proposed deal.
Through the merger, Piedmont would provide at least $990 million in capital over a 10-year span to University Hospital. It would also upgrade the facility's information systems, Michael Mandl, executive vice president of Piedmont, said.
"I will tell you, without this relationship with Piedmont, it is highly unlikely that University could fund all of this necessary work on its own," University Hospital CEO Jim Davis said.
A Stroudwater analysis estimated University Hospital's value at $277 million to $338 million and the value of the deal for the community at about $1.4 billion.
Ernst & Young's analysis that considered its own market research as well as the Stroudwater analysis found the hospital's value at $668 million to $722 million and the value of the deal for the community to be $767 million.