Atlanta's one-hospital Saint Joseph's Health System and three-hospital Piedmont Healthcare are discussing formation of a joint operating company sharing physician networks, hospitals and research facilities, according to a report by the Atlanta Business Chronicle.
Observers think the alliance, meant to control costs and boost quality, might be the first step toward a full merger of the systems and may spark similar consolidations between other Atlanta-area hospitals.
The plan is backed by Catholic Health East, Saint Joseph's parent, and is expected to lower its operating expenses at least $20 million a year, while Piedmont expects savings of up to $10 million a year.
Read the Atlanta Business Chronicle's report on Saint Joseph's Health System and Piedmont Healthcare.