3 Southern Health Systems Sign Collaboration Deal

Baptist Health in Jacksonville, Fla., Flagler Hospital in St. Augustine, Fla., and Southeast Georgia Health System in Brunswick have signed a letter of intent to create a loose affiliation.

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System executives said the deal is neither a merger nor an acquisition. Baptist, Flagler and SGHS would all retain their names, brands and local governance.

Details of the affiliation were sparse. According to a news release, the systems are considering a model in which they would create a “contiguous health network” spanning across all three service areas. Jacksonville sits between Brunswick and St. Augustine, which are about 100 miles apart.

The systems did not indicate if they would partner on areas like supply chain and revenue cycle to reduce costs. Baptist, Flagler and SGHS will refine the proposed affiliation over the next “several” months, although no timeline for a definitive agreement has been set.

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