BERLIN, MD -- Leaders with Atlantic General Hospital (AGH) and TidalHealth signed a definitive agreement Thursday to finalize a partnership between the two organizations.
Officials with both organizations signed a non-binding letter of intent for the partnership in December of 2024. Today's agreement officially brings the two together under TidalHealth.
"It's hard being an independent hospital. It's difficult in healthcare, and I think there's definitely a trend in the industry to come together," Tidalhealth's CEO Steven Leonard said.
AGH's President Don Owrey told WBOC the hospital had been independent for 32 years. However, due to changes in the healthcare industry, Owrey said they decided they needed additional support.
"We determined that we'd be better off if we aligned with an organization to bring advanced technology and more physician services into the community," Owrey said. "It will help increase access to care."
Owrey shared sentiments similar to Leonard's, saying that the healthcare industry is often difficult for independent hospitals.
"We need more doctors. We need more skilled professionals. We need more technology," Owrey said. "The ability to do that together with Tidalhealth is going to be transformative for the Atlantic General Hospital."
Owrey told WBOC they plan to expand areas of the hospital, increase specialty services, and expand surgery options at the campus under the partnership. Owrey also said they plan to convert current patients' medical records to an electronic service and connect them with services provided through TidalHealth.
"Over time our services will enhance, but patients should come to expect the same great care they've always gotten from each of us individually," Owrey said.
Tidalhealth's CEO Steven Leonard said the beginning of the partnership will be a transition period.
"We want care close to home, and we want to figure out the services that the people in the Atlantic General Service Area need. We want to add physicians, add capabilities if people need surgery, do more operations here on this campus," Leonard said.
Leonard said all current patients will transfer over during the transitionary period, and they do not anticipate any changes to the hospital's current staff.
"We're always looking for people," Leonard said. "On the flip side, I think when you're part of a larger team there's more opportunity for growth and development."
Leonard expressed a need for increased medical care across the peninsula and said he hopes the partnership will support that need.
"It's really important that you provide access close to home. Otherwise, people just won't drive. And it's hard on Delmarva because transportation is an issue," Leonard said. "We want people connected with care close to home so they're more engaged for their own health and wellness."
Tidalhealth officials said the partnership willcomewith financial support for the hospital.
"There's a commitment over a 5-year period for around $50 million dollars in investments," Leonard said.
Officials said the transitionary period is expected to take around 10 months. During that timeframe, the Atlantic General Hospital will transition into its new name 'TidalHealth Atlantic'. Leonard said they have a target date of March 1st, 2026 for the end of that transition period.