Floyd Medical Center Strategically Combines with Atrium Health

FocalPoint Partners, LLC (“FocalPoint”), alongside ECG Management Consultants, LLC, served as strategic and financial advisor to Floyd, and the law firms of Epstein, Becker and Green, P.C. and Baker Donelson, P.C. served as transaction and regulatory counsel to Floyd, respectively. While the specific terms of the transaction were not disclosed, by virtue of the strategic combination, Atrium Health has pledged to invest approximately $650M in capital for Floyd over the next decade to enhance capabilities, skills and talent, facilities, and technology. Floyd’s combination with Atrium Health will also result in the creation of a new Floyd-Polk Healthcare Foundation, Inc., which when fully funded, is expected to total more than $150M in assets. The Foundation plans to address disparities in care throughout the region, among other things, with its investment earnings. The $650M in long-term capital commitments, combined with the $150M in Foundation proceeds, plus the defeasement of Floyd’s outstanding indebtedness by Atrium Health, provides for total economic consideration in excess of $900M.

Kurt Stuenkel, Chief Executive Officer of Floyd, commented, “What impressed me from the first meeting with Atrium Health’s leadership is how alike we are in our commitment to clinical excellence, service to the community and, especially, a mission that embraces caring for all patients. Being part of Atrium Health will allow us immediate access to the best minds and resources of a highly regarded academic health system that will help ensure quality, accessible health care is available in our community for decades to come. The tireless efforts and health system transaction advisory expertise of the FocalPoint team, supported by our entire roster of legal and strategic advisors, resulted in a merger with Atrium Health that will optimally position Floyd for success over the coming decades and beyond.”

Managing Director Hector Torres, who co-leads FocalPoint’s Healthcare Investment Banking practice, stated, “Working on behalf of best-in-class, community-based hospitals and health systems such as Floyd remains a cornerstone of FocalPoint’s national Healthcare Investment Banking practice. Floyd’s merger with Atrium Health represents a highly strategic approach to ensuring both the sustainability and enhancement of the full continuum of clinical services for the communities it serves. We very much look forward to Floyd’s continued growth and success as an integral component of the Atrium Health enterprise.”

About Floyd Medical Center
The Floyd family of health care services is a leading medical provider and economic force in northwest Georgia and northeast Alabama. At the hub of these services is Floyd Medical Center, a 304-bed full-service, acute care hospital and regional referral center. Floyd employs more than 3,400 employees who provide care in over 40 medical specialties at three hospitals: Floyd Medical Center in Rome, Georgia; Floyd Cherokee Medical Center in Centre, Alabama; Floyd Polk Medical Center in Cedartown, Georgia, as well as Floyd Behavioral Health Center, a freestanding 53-bed behavioral health facility, also in Rome; and a primary care and urgent care network with locations throughout the service area of northwest Georgia and northeast Alabama. For more information, please visit www.floyd.org.

About Atrium Health
Atrium Health is a nationally recognized leader in shaping health outcomes through innovative research, education, and compassionate patient care. Atrium Health is an integrated, nonprofit health system with nearly 70,000 teammates serving patients at 40 hospitals and more than 1,400 care locations. It provides care under the Wake Forest Baptist Health name in the Winston-Salem, North Carolina, region, as well as Atrium Health Navicent and Floyd in Georgia. Atrium Health is renowned for its top-ranked pediatric, cancer, and heart care, as well as organ transplants, burn treatments, and specialized musculoskeletal programs. Ranked among U.S. News & World Report’s Best Hospitals for Cancer and in eight pediatric specialties, Atrium Health has also received the American Hospital Association’s Quest for Quality Prize and was the recipient of the 2020 Centers for Medicare & Medicaid Services Health Equity Award for its efforts to reduce racial and ethnic disparities in care. With a commitment to every community it serves, Atrium Health seeks to improve health, elevate hope, and advance healing – for all, providing more than $2 billion per year in free and uncompensated care and other community benefits. For additional information on Atrium Health, please visit www.atriumhealth.org/.

About FocalPoint Partners
FocalPoint is a leading middle market investment bank specializing in mergers and acquisitions, private placements, financial restructurings, and special situation transactions. With offices in Los Angeles, Chicago, New York, and Shanghai, the firm serves middle market clients throughout the U.S. and has a dedicated Healthcare practice comprehensively covering specialty categories across the continuum of care. Visit focalpointllc.com and follow us on LinkedIn and Twitter.

Please contact Managing Director Hector Torres at 917-209-6490, htorres@focalpointllc.com with any questions regarding this transaction.