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Wellstar currently operates 11 hospitals, five which are leased to Wellstar by their respective hospital authority. The hospital authorities retain ownership of the hospitals and ensure that Wellstar meets the conditions set forth in the leases. Each Hospital Authority is independent of Wellstar, and the board members of each authority are appointed according to bylaws of each authority. Some authority members are appointed by county commissioners and some are appointed by the authority itself.
The hospital operating entities of Wellstar were structured as wholly owned, non-profit subsidiaries of Wellstar Health System and were organized for the benefit of and to carry out the purposes of their respective hospital authorities. The subsidiary operating entities for each hospital is exempt from federal income taxation as organizations whose purposes are exclusively charitable, educational, and scientific as described in section 501(c)(3) of the code, and are also exempt from certain state and local taxes. None of the Authorities are subject to taxes, and none has taxing power.
Cobb Hospital, Inc. (CHI) was organized in 1986 and leases Wellstar Cobb Hospital from the Hospital Authority of Cobb County. The Hospital Authority of Cobb County is a public corporation activated by a resolution adopted by the Board of Commissioners of Cobb County on August 7, 1962.
Douglas Hospital, Inc. (DHI) was organized in 1992 and leases Wellstar Douglas Hospital from the Hospital Authority of Douglas County. The Hospital Authority of Douglas County is a public corporation activated by a resolution adopted by the Board of Commissioners of Douglas County on May 7, 1946.
Kennestone Hospital, Inc. (KHI) was organized in 1993 and leases Wellstar Kennestone Hospital and Windy Hill Hospital from the Cobb County Kennestone Hospital Authority. The Cobb County Kennestone Hospital Authority is a public corporation activated by a resolution adopted by the Board of Commissioners of Cobb County on May 23, 1972.
*The legal entity, Windy Hill Hospital, Inc. was dissolved in February 1997. The operations of Windy Hill, Inc. are now part of Kennestone Hospital, Inc., but the hospitals are licensed separately.
Paulding Hospital, Inc. (PHI) was organized in 1994 and leases Wellstar Paulding Hospital and Wellstar Paulding Medical Nursing Unit from the Paulding County Hospital Authority. The Paulding County Hospital Authority is a public corporation activated by a resolution adopted by the Board of Commissioners of Paulding County on January 6, 1954.