Albany, Ga.-based Phoebe Putney Health System is awaiting a final settlement order from the Federal Trade Commission "any day," and is planning for some changes in the year ahead, according to an Albany Herald report.
The FTC filed suit in April 2011 to block Albany, Ga.-based Phoebe Putney's acquisition — through an arranged lease with the Hospital Authority of Albany-Dougherty County — of Palmyra Medical Center, now known as Phoebe North, also in Albany.
Last February, the Supreme Court sided with the FTC. The FTC and health system reached a settlement in August, which would let Hospital Authority of Albany-Dougherty County retain ownership of the hospital and Phoebe Putney Memorial Hospital operate it.
It was a unique settlement from the FTC, which traditionally prefers divestiture in these cases. At the time, the FTC said Georgia's strict needs assessment criteria had Albany rated as "over-bedded" and that it was unlikely a new owner of Palmyra would be able to qualify for a certificate of need to operate an independent hospital.
But as part of the settlement, Phoebe and the authority have agreed that, for the next 10 years, they will not acquire, without prior notification to the FTC, a general acute-care hospital, an inpatient or outpatient clinic or facility, or a physician group practice of five or more physicians within a six-county region.
As for 2014 plans, Phoebe Putney Health System CEO Joel Wernick told the Albany Herald, "We will have a year dominated by design, as we make sure we invest in facilities designed efficiently (to allow for a desirable) combination of quality and price."
The system is planning to convert Phoebe North into a women's and children's center this year, once the FTC settlement is finalized. The hospital's emergency center may also be modified, according to the report. Mr. Wernick said the costs for the changes are expected to hit the eight-figure range.
More Articles on Phoebe Putney and the FTC:
Phoebe Putney Won't Have to Sell Palmyra Hospital in FTC Settlement
Supreme Court Sides with FTC in Phoebe Putney Case
"Disappointed" Phoebe Putney Closely Examining Supreme Court Decision