Georgia system halts physician group deal amid DOJ probe

Gainesville-based Northeast Georgia Health System has paused its acquisition of Longstreet Clinic after confirmation that an unspecified number of Longstreet physicians are under investigation by the Justice Department, a spokesperson for the health system told Becker’s.

The nature of the investigation has not been disclosed.

Longstreet Clinic employs more than 800 people, including over 200 physicians and advanced practice providers in 20 specialties across nine northeast Georgia cities.

“We have been made aware of certain investigations by the Justice Department. As a result, NGHS has paused the work to integrate Longstreet Clinic pending the results of the federal investigation,” the health system said in a statement. “At this time, it’s unclear how long the investigation will take.”

NGHS and Longstreet Clinic signed a definitive agreement for the transaction in April, with plans for the medical group to officially join the system by the end of 2025. 

The two organizations share a decadeslong history of collaboration. Since Longstreet’s founding in 1995, partnerships have included the development of neonatal intensive care units at Northeast Georgia Medical Center Gainesville and Northeast Georgia Medical Center Braselton; dedicated oncology treatment centers in Braselton and Toccoa; and a shared Epic EHR system. The two also co-lead HP2, a clinically integrated network of Longstreet Clinic, Northeast Georgia Physicians Group, Georgia Heart Institute and other independent practices across the region that collaborate on performance-based insurance contracts.

For now, NGHS said the acquisition will remain on hold until the federal investigation is resolved.

“We are certainly disappointed that we need to pause our intended integration. We look forward to the investigations reaching satisfactory resolution,” the health system said in a statement. “Until then, NGHS will continue to focus on providing excellent care for our community.”

Longstreet Clinic did not respond to Becker’s request for comment. 

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