WellStar Health System
A nonprofit health system operating hospitals and medical facilities in Georgia.
PE-OWNED
Acquired by KKR2020-09-01
What Made It Great
Integrated healthcare delivery system serving metropolitan Atlanta
What PE Will Likely Do
Staffing reductions, with RNs and specialized clinicians being replaced by lower-cost LPNs and nursing assistants
Closure or scaling back of unprofitable but essential healthcare services like mental health, rural clinics, and pediatric care
Aggressive billing practices, with 'upcoding' of procedures and diagnoses to maximize reimbursements
Real estate sale-leaseback transactions, extracting equity from hospital facilities
Significant increases in management and consulting fees charged to WellStar hospitals
Expected Timeline
“0 to 6 months months”
Announcements of 'optimization' initiatives, leadership changes, and plans for 'efficiency improvements'
“6 to 12 months months”
Staffing cuts begin, with noticeable reductions in nursing staff and service availability
“12 to 24 months months”
Patients experience longer wait times, reduced access to specialized care, and declines in service quality
“24 to 36 months months”
Closure of specific healthcare services, quality scandals, and potential financial distress for the health system
“36+ months months”
Possibility of bankruptcy, hospital closures, or a fire sale to another healthcare operator
Similar Cases
Other companies that followed a similar path after PE acquisition
What You Can Do
Actions
Be vigilant for changes in your healthcare providers, such as longer wait times, reduced availability of specialized services, or concerns about billing practices
Advocate for your local community hospitals and healthcare systems to maintain essential services, even if they are less profitable
Stay informed about the ownership and management changes of your healthcare providers, and be prepared to voice concerns or seek alternative options if quality declines
Alternatives
Community-focused healthcare
Integrated managed care consortium