New Initiatives to Improve Georgia Healthcare
Rural hospitals across the nation struggle with healthcare accessibility, due to economic and demographic challenges. Severe staffing shortages, shrinking operating margins, and a steady decrease in reimbursements have severely compromised healthcare access for rural or less affluent communities. In Georgia’s healthcare system, 18 of its 30 rural hospitals are at risk of closing. Below are some of the government programs and recent mergers within Georgia that are working to bridge the gap.
Governor Kemp’s Rural Hospital Support Program
The Rural Hospital Stabilization Grant Program was established in 2014 under Governor Nathan Deal to provide funding to rural hospitals for improvement in their financial and operational stability. Part of this grant includes the Dual Track Rural Hospital Support Grant that allows hospitals to choose the funding option that best suits their specific needs. The grant has awarded more than $40 million to rural hospitals across Georgia.
In June 2024, Governor Brian Kemp announced $6 million worth of grant awards that will be dispersed to 13 hospitals in Georgia’s rural areas. The largest grant from the 2024 announcement was awarded to Archbold Memorial Hospital in Thomasville and the Colquitt Regional Medical Center in Moultrie. Each hospital received $500,000 in grant funds.
Health Systems Expand into Georgia’s Rural Communities
Emory Healthcare and Houston Healthcare Merger
In August 2024, Georgia’s largest health system, Emory Healthcare, announced they signed a letter of intent (LOI) to acquire Houston Healthcare. Currently under an executed LOI, this agreement is expected to finalize at some point this year.
Upon merging, both companies will be able to provide healthcare services outside of Atlanta. Particularly benefitting those who live in Houston County, this merger will expand and improve the expertise and quality of care being offered within the community. Houston Healthcare has been serving Houston County since 1960, and it has 2,500 employees and 200 physicians that serve more than 300,000 patients each year. It currently has two hospital locations with 282 beds combined, along with five outpatient facilities and nine physician practices.
WellStar Health System and Augusta University Health System
WellStar Health System and Augusta University Health System began their merger on August 20, 2023. Upon merging, both systems became WellStar MCG Health, working to deliver better facilities and address the physician shortage through new enhanced training opportunities. The partnership also aims to provide excellent clinical care, which includes pediatric services that WellStar provides at the Children’s Hospital of Georgia.
Georgia Heart Hospital Program
To improve the quality of healthcare in rural Georgia, effective January 1, 2017, Governor Deal signed Senate Bill 258. Hospitals that can participate in this program are solely in areas that have a population of less than 50,000 residents, accept Medicare and Medicaid, and must have a five-year plan with the Georgia Department of Community Health.
When Governor Kemp signed House Bill 1339 in April 2024, the HEART program was extended until December 31, 2029. Additionally, the annual amount of allowed tax credits increased from $75 million to $100 million.
House Bill 1339
As another effort to improve healthcare in rural Georgia, Governor Kemp and others signed House Bill 1339 into law during April 2024. The bill was implemented to ease restrictions that were created by the Certificate of Need (CON) laws. Originally, the CON laws were enacted to control healthcare costs and ensure access to healthcare services. Now with House Bill 1339, the time period for review of hospital applications will be shortened.
Some features of the bill include the expansion of hospital bed capacities and growing perinatal services. Additionally, Bill 1339 will develop the Comprehensive Health Coverage Commission, a group that will advise the governor on the access of healthcare for low-income residents.
