The news comes after Houston Healthcare received board approval to join Atlanta-based Emory Healthcare, which would add two hospital campuses, five outpatient facilities and nine physician practices to Emory. The two parties signed a letter of intent for Houston Healthcare to join Emory in August 2024.
The report, conducted by Stroudwater and obtained by WMAZ, revealed that Houston Healthcare’s cash on hand dropped to $80 million in 2024, down from $170 million 10 years ago. “The organization is not sustainable and may be unable to operate in its current state in approximately one to two years,” the report said.
It also found that the system has seen “little to no medical staff growth and development,” with improvements to equipment and facilities postponed due to lack of funding. The report warned that Houston Healthcare’s situation will only worsen if it does not merge with another organization and could force it “to drastically reduce services or even consider closing the health system altogether within the next 12 to 24 months.”
“In today’s healthcare landscape, smaller community hospitals face increasing challenges that
make it difficult to operate independently,” a spokesperson for Houston Healthcare said in a Feb. 17 statement shared with Becker’s. “By joining Emory Healthcare … we hope to increase operational efficiencies, gain opportunities to invest in advanced technology, recruit top medical talent and expand critical services to our community, all while continuing Houston Healthcare’s legacy of quality, compassionate care.”
