An Atlanta-area hospital system could take over the hospitals affiliated with Georgia's only public medical school under a deal announced Tuesday. Augusta University Health System says it has signed a letter of intent to join Marietta-based nonprofit Wellstar Health System.

The purchases from HCA, announced Monday, would make Atlanta-based Piedmont the leading system in Georgia in number of hospitals, at 15. The Emory and Wellstar systems are next, at 11.

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Atlanta-based hospital chain Piedmont Healthcare and health insurance company Blue Cross Blue Shield of Georgia are at loggerheads. The two failed to...