Statistics from the US Department of Transportation show more than 700,000 registered motor carriers are traversing our highways and roads. These trucks, which can be packed with everything from bricks and stone to dog food and grocery items, keep thousands of American businesses afloat. For business owners shipping these products across the country, precise planning and high-level tracking are required. But with increasing rates and a wide range of delays to overcome, overseeing a shipment of LTL freight is easier said than done.
For overworked business owners, managing multiple shipments can seem impossible in today's freight landscape. But the reality is that many businesses rely on less-than-truckload shipments to keep their doors open. When these shipments are compromised, their business is too. But there's a viable solution: LTL freight brokers in Mobile, AL like RelyEx provide reliable solutions to common LTL shipment problems, eliminating the stress and worry of LTL shipping.
With more than 30 combined years of LTL experience and a solutions-oriented team, RelyEx is your go-to choice for streamlined, efficient LTL shipping services. To understand the true value of RelyEx's less-than-truckload shipping options, it helps to understand first what LTL shipping is and why it's used.
In the freight industry, LTL stands for "less-than-truckload." It is a widely-used method of transportation for smaller shipments that don't require the space of a full truckload. In an LTL shipment, several customers' loads are placed onto one truck, which helps reduce how much it costs to ship those products.
In fact, if your freight doesn't fill an entire trailer but weighs 150-15,000 lbs., LTL freight shipping in Mobile, AL, may be the most efficient, cost-conscious way to transport your products. That's because, in an LTL setup, you're only paying for the space your freight takes up. LTL shipping companies like RelyEx optimize LTL loads by choosing the most efficient routes at the best rates so your cargo gets to where it needs to go without any issues.
Business owners often choose LTL freight services in the following circumstances:
When it comes to LTL delivery options, there are a lot to choose from. But not every LTL broker is created equally. Some LTL companies do not have the tools or technology to track your shipments and optimize your routes. In worst-case scenarios, they may not be insured or reliable. If you're looking for an experienced LTL carrier that exceeds expectations with time-tested strategies and innovative technologies, look no further than RelyEx.
With more than two decades of experience in LTL operations, our team utilizes the power of GlobalTranz to compare rates across hundreds of approved carriers in the blink of an eye, while also providing the most cost-effective options for moving your freight. When you choose RelyEx for LTL shipping, you can leverage our expert team to handle your shipments. You can also manage the process yourself via GTZShip, which is Globaltranz's user-friendly management system. With GTZShip, you can access and compare LTL shipping rates, track your shipments, and manage your financials, all from one intuitive platform.
When it comes to LTL freight in Mobile, AL, clients trust their products with RelyEx for many reasons, including the following:
Because GTZShip keeps outsized freight available, it can negotiate the best LTL rates on your behalf. Our clients can access these extra-low rates in one of two ways:
Regardless of the option you choose, RelyEx's knowledgeable customer care reps will cover all of your LTL shipping options, so you can make an informed shipping and purchasing decision for your freight.
Yes, you read that right - in addition to giving you access to industry-leading rates, RelyEx's partnership with GTZShip gives you full management of your freight. We're talking about access to reporting, tracking, and much more. This extensive visibility is essentially a one-stop shop for everything related to the status of your freight.
Unlike some LTL shipping software, this system requires no contracts or signup fees, making it simple to provide quotes and book immediately when you're ready. Whether you use GTZShip directly or rely on our team to book your freight, your company will always have access to this free technology.
While it's true that RelyEx provides customers with the best rates and technology in the LTL industry, we go above and beyond the normal call of duty. Why? Because we strive to treat your shipment as if it's our most important one. Put simply, we put a lot of time and effort into making sure we do things right the first time around. Our fierce commitment to the customer and to quality protects not only your reputation, but your bottom line by preventing lost customers and sales.
RelyEx excels at LTL shipping because we are:
From dedicated LTL solutions to transactional relationships, RelyEx is here to help. Unlike other LTL companies, we get the job done right with customer-focused service, industry expertise, and Globaltranz's industry-leading Transportation Management System.
Our dedicated team of LTL specialists provides you with the best freight visibility available, whether you need a few shipments a week or you need hundreds. In order to do so, we communicate with carriers throughout the entire shipping process, so you know your items are delivered on time. Though rare, if we spot an issue, we'll provide you with an alternative solution immediately.
Plus, if you have large quantities that need to be shipped, our team is happy to provide you with customized reporting for free. That way, you can access at-the-moment updates and important shipment documentation with a few clicks or taps.
When your freight is too light for full truckloads but too heavy for basic parcel carriers like UPS, LTL shipping is a great option to consider. When you use an LTL shipping company like RelyEx, you get even more value. We've been over some of the basics associated with LTL freight shipping - now let's touch on some of the biggest benefits of using a company to handle logistics from start to finish.
One of the most common reasons clients use LTL services is because they're able to save money. LTL shipping is much less expensive than the alternative, which is to hire a private driver and truck. When you go in on LTL services with other shippers, you can have your products delivered at a fraction of the cost of going private. In this setup, you pay for space you use, not the space you don't use, which is common in full truckload freight shipping.
As an added benefit, relying on an LTL freight company like RelyEx can lower your warehouse costs since more shipments can be sent at a time. That means you don't have to wait weeks or even months for a trailer to fill up.
When you use a parcel carrier like FedEx, you can only ship up to 150 pounds at a time. That means you'd have to break down your shipment into separate boxes in order to ship. With LTL freight shipping, your packages can be palletized and shrink-wrapped so they're shipped in a single load.
At RelyEx, our team knows how important your shipment is, whether you're sending thousands of pounds of products or a single pallet. That's why we ensure your products are packaged correctly and have security protocols baked into every service we offer. Plus, by keeping your freight together, we decrease the chance of damaging your cargo, which pleases your clients and boosts your customers' satisfaction.
The magic of LTL shipping lies in the fact that we fill fewer trailers with more freight. Doing so reduces global emissions and makes the process much quicker. Imagine using a semi-truck to haul products that only fill a quarter of the trailer. It would waste money, time, and space that could be used for other products. With LTL shipping, you're protecting the environment and reducing the number of partially-filled trucks on the road. This, in turn, saves you money and makes you an eco-friendly company - something you can use as a selling point for your business.
LTL providers like RelyEx use advanced logistics technology to ensure your cargo arrives on time and without damage. By investing in technology like GlobalTranz, we save our clients from doing so themselves. With GlobalTranz, our clients gain access to robust tracking options like real-time freight locations, so you can monitor your shipment's progress. With GlobalTranz, you get more than just a way to book your LTL cargo â you benefit from our qualified network of carriers, expert logistics support, and leading technology features.
It's impossible to say exactly how much your LTL shipping may cost because the NMFC, or National Motor Freight Classification, determines those prices. Using this standard, pricing is dictated for commodities moving in intrastate, interstate, and foreign commerce. Items are grouped into 18 different classes, based on four characteristics:
If you're shipping a product that is more likely to be damaged, stolen, or cause damage to other items, it may affect LTL shipment pricing.
Does your product require specific care or handling instructions? If so, you can probably expect higher prices.
This factor accounts for how much space your item occupies in relation to its weight or the weight per cubic foot for each piece of freight you are shipping.
How easy is it to load and transport your commodity? Can it be loaded and transported with other items?
When combined, these characteristics are used to establish an NMFC code for your LTL cargo. These codes are crucial, as they help your LTL carrier understand the challenges of shipping your products. If the item you need to ship has a high NMFC code, it's because it's more difficult to transport, which usually means it's more expensive to ship.
Depending on where and how often you ship LTL freight, your broker may choose a regional or national LTL carrier. Regional carriers often service a group of states within a region. National carriers have a larger footprint and can often eliminate the need to use several carriers for your shipments. RelyEx has the infrastructure and strategies for all of your LTL shipping - contact our office today to learn more about your options.
Though regional and national carriers are different, they often use similar models for shipping. Two of the most popular types of shipping methods include hub and spoke distribution and LTL consolidation.
In this traditional model, your shipments go through a network of warehouses, terminals, and hub facilities where your products are grouped with other shipments. Your freight then travels to local "spokes" (or terminals), where they are delivered. If you need to ship freight over short distances, this model may be a good choice to consider.
Some common benefits of the hub and spoke model include:
LTL consolidated shipping is a model where LTL carriers bring several shipments from different shippers to a final destination. Instead of using hubs and spokes along the shipping route to bundle freight and move cargo, LTL consolidation works by taking multiple shipments and turning them into a single truckload. This truck then makes multiple stops, where your products are delivered.
Some of the most common benefits of LTL consolidation include:
At RelyEx, our goal is to expertly manage the movement of your freight so you can focus on your core business. With more than 20 years of combined experience with LTL freight shipping in Mobile, AL, our team can select the most efficient and cost-effective model for your needs. That way, you can accomplish your day-to-day tasks while we handle the heavy lifting and any logistical challenges.
At RelyEx, we believe that trustworthy, comprehensive, and streamlined LTL shipping options are better for your business. And for us, what's better for your business is better for ours. That's why, when it comes to LTL shipping, we work tirelessly to ensure every aspect of your freight experience is embedded excellence. We take this unique approach because our management were once customers like you. They were people who, for one reason or another, had to deal with frustrating and often unsolved shipping and logistics challenges. Today, we take pride in solving those challenges and only partner with carriers who match our high standards.
If you're looking for an LTL company in Mobile, AL that prioritizes customer service, strong communication, and proactive thinking, we're here to help you avoid delayed shipments and missed expectations.(843) 885-3082
Download ImageMOBILE, Alabama — Two companies are launching growth projects in the Mobile area, bringing a combined $98 million in new capital investment and almost 240 jobs, according to the Mobile Chamber.The companies are:Keith Chatten, CEO of Superior Air Parts, said ...
MOBILE, Alabama — Two companies are launching growth projects in the Mobile area, bringing a combined $98 million in new capital investment and almost 240 jobs, according to the Mobile Chamber.
The companies are:
Keith Chatten, CEO of Superior Air Parts, said the company considered many factors in its decision and found the Mobile area offered many advantages.
“The transportation system that is in place and expanding in the Mobile area is very impressive. The area has invested heavily in education including high school programs, technical schools with the recent addition of manufacturing programs at Bishop State and the extensive growth at the University of South Alabama,” Chatten said.
“All of that certainly helps us find the various skill sets needed, such as machinists, operators, test technicians, engineers, and various other professionals,” he added.
Superior Air’s Mobile County facility will host research and development, engineering, a test cell, machining and manufacturing. Its operation, including the corporate headquarters, will be located on Radcliff Road in Creola.
The company plans to break ground by the end of 2023. Operations for phase one are set to begin in 2024, according to the Mobile Chamber.
“As a leading manufacturer of FAA-approved aftermarket parts for piston-engine aircraft, Superior Air Parts will be a strong addition to the growing aviation cluster in the Mobile region,” said Greg Canfield, Secretary of the Alabama Department of Commerce.
“Superior’s decision to relocate its manufacturing operation and headquarters to Mobile County clearly reflects the company’s confidence in the area’s workforce.”
As part of its new project, Chart purchased the former Standard Concrete manufacturing facility, located along the Theodore Industrial Canal.
The cryogenic containers that will be manufactured at the new facility will be up to 30 feet in diameter, 100 too 200 feet long, and weigh close to 1 million pounds. This location will allow the company to directly load the containers, which are too heavy to transport on roadways, directly onto barges.
Chart’s expansion project builds on its Alabama presence, which began in 2020 when it acquired the cryogenic and hydrogen trailer business of Worthington Industries, which operated the Theodore site.
In March 2021, Chart announced a $2.5 million expansion project, which tripled its employee roster at the Mobile County facility. It currently employs 165 people at the existing facility
“We are thrilled to see Chart’s continued confidence in the Mobile area by expanding their operations in Theodore,” Mobile Chamber President & CEO Bradley Byrne said. “Expansions like this are made possible by support from Partners for Growth investors and Team Mobile.”
Chart is a publicly traded company based in Ball Ground, Georgia, just outside of Atlanta. It was named one of Fortune’s “100 Fastest Growing Companies” in 2020 and has customers on six continents.
“The expansion of Chart Industries is another reflection of the great workforce and thriving business environment that exists in the Mobile area,” said Mobile Mayor Sandy Stimpson.
“We are excited to be a partner in the future success of Chart Industries and are grateful for their continued investment in Mobile.”
Mobile County Commission President Connie Hudson echoed those comments.
“This substantial capital investment and the creation of these new jobs will greatly benefit and further diversify our local economy,” she added.
Editor’s note: This story originates in the Lede, a daily curated news product for local readers. For more information, visit https://www.alabamalede.com.On Thursday, the city of Mobile announced its new “Homeownership Provides Equity” (HoPE) program, which w...
Editor’s note: This story originates in the Lede, a daily curated news product for local readers. For more information, visit https://www.alabamalede.com.
On Thursday, the city of Mobile announced its new “Homeownership Provides Equity” (HoPE) program, which will provide Mobile County residents who qualify for housing choice vouchers (sometimes called Section 8 vouchers) a path to homeownership.
Here’s how city officials say it will work: the city will provide a mortgage for a new home on an empty lot in one of the city’s infill neighborhoods. The resident will use the voucher for mortgage payments, paid to the city, instead of rent. Once the mortgage has been paid off, the voucher holder will own the home outright.
There’s no down payment required on the home, as the city will forgive part of the mortgage in place of the down payment, part of an existing down payment assistance program the city has in place.
The interest rate on the mortgage is at 2%, below market rate. As is typical with housing choice vouchers, the voucher holder will pay no more than 30% of their income toward the mortgage payment; the voucher will cover the difference. And the city will work with the voucher holder to lower the interest rate if it’s needed, James Roberts, senior director of the city Neighborhood Development Department, says.
Anyone in Mobile County who receives a housing choice voucher is eligible to apply for the program. However, not every housing authority allows housing choice vouchers to be used for homeownership; check with the housing authority that you receive your voucher from to see if it’s allowed. The Mobile Housing Authority and the Prichard Housing Authority allow vouchers to be used for homeownership programs such as this.
In order to be eligible for the program, you must be able to pay one percent of the mortgage, to be used for building the home. In addition, you must also have a satisfactory payment history.
Once the city underwrites the loan, the developer, Affordable Homes Gulf Coast, will then build the home on an available lot. The lots are provided by the city or a partner, such as a church or nonprofit. The homes will be built to “Fortified Gold” standard, which means they are built to withstand natural disasters. This lowers insurance costs on the home, developer Terry Harbin says. The city pays the developer fee.
There will be 50-75 homes built in the next three years through this program. The program is being paid for through $10 million from the federal American Rescue Plan Act (ARPA). The city hopes to continue the program once that money runs out through residual funds from the program and additional federal funds, Roberts says.
If you are interested in applying for this program, contact your housing authority case manager. For more information on the program, you can contact the city of Mobile Neighborhood Development Department, either online or by calling (251) 208-6294.
If you purchase a product or register for an account through one of the links on our site, we may receive compensation.
Every year around the carnival season, a familiar and playful argument breaks out between New Orleans, Louisiana, and my hometown of Mobile, Alabama. Amid an online discussion about who does it better and why, I saw one comment that said something like, “At our house, we have to put a dollar in the jar every time someone says that Mardi Gras started in Mobile.” If each Mobilian followed this household rule, we could probably pay for the new Bayway in a year. All jokes aside, we do take our revelry seriously, especially from the n...
Every year around the carnival season, a familiar and playful argument breaks out between New Orleans, Louisiana, and my hometown of Mobile, Alabama. Amid an online discussion about who does it better and why, I saw one comment that said something like, “At our house, we have to put a dollar in the jar every time someone says that Mardi Gras started in Mobile.” If each Mobilian followed this household rule, we could probably pay for the new Bayway in a year. All jokes aside, we do take our revelry seriously, especially from the night before Thanksgiving through Fat Tuesday. Here, I’ve rounded up some of my personal favorite Mobile spots, plus a few touristy (but only mildly cheesy) things to do on your first visit. Pro tip: If you want to blend in with the locals, it’s a “hugger,” not a “koozie” and a “wharf,” not a “dock.” And for the love of Joe Cain, it’s pronounced Mo-BEEL, not like “mobile phone.”
This coffee shop, which lives in a historic home in the heart of the Spring Hill area of Mobile, is extremely special to me. My mom and I have made countless “Carpe runs” in my lifetime, and I can promise you’ll enjoy whatever you order and feel right at home. After you get your fill, head across the street to walk around the historic Spring Hill College campus. Don’t miss a photo opp at the Avenue of the Oaks.
This cool downtown institution serves so much more than coffee, including Italian gelato and fresh breakfast and lunch options.
This funky little coffee shop near the University of South Alabama campus also has incredible sandwiches if you stop in around lunchtime.
Long before brunch got trendy and Bloody Mary toppings got out of hand, Spot of Tea was gracing downtown Mobile with an incredible menu that includes Deadly Hashbrowns (you may really die…and go straight to heaven) and a strawberry tea so good you’ll need a personal pitcher of it.
On your first visit to The Dew Drop, you may wonder, “Is that hot dog supposed to be bright red? And is it cooked?” Yes, and yes. Even if you’re not from Mobile, stepping into this restaurant will feel like a time machine back to your childhood via the decor, the classic comfort food, and the staff’s Southern hospitality.
Repeat after me: “When I go to Callaghan’s, I will order the burger.” Say it one more time just in case. After that, grab a beer and enjoy this 1946 bar and grill in Mobile’s gorgeous Oakleigh Garden District.
This precious eatery has plenty of options for lunch and a lovely patio for enjoying a nice day. It’s also the ideal location to grab a pre-dinner cheese board and glass of wine.
Whether you get the famous Butch Burger, a plate of wings, or a po’boy, we can assure you you’ll be full leaving this Midtown Mobile mainstay.
A newer addition to the Midtown restaurant scene than its across-the-street neighbor The Dew Drop Inn, Nixon’s has established itself as a go-to site for sandwiches and sports-watching.
The Meat Boss’s ordering instructions are simple: “Choose your meat, choose your bread, choose your sauce, choose your toppings and choose your side.” Do those things, and you will leave incredibly happy (and satisfied).
Noja is the perfect downtown venue for fine dining in a comfortable yet chic atmosphere. Be sure to make a reservation!
As the name suggests, Pour Baby is a wonderful wine bar to try a new bottle, but the dinner can’t be overlooked.
Craving pasta? Call Via Emilia and get a table ASAP. You won’t believe the caliber of Italian food being served at this cozy little cottage.
No offense to Ruth, but I normally wouldn’t include a chain restaurant in a roundup like this. However, Mobilians know that our location of the steak house is special. Not only are several of the walls lined with photos of the past kings of Mardi Gras, but the real treat is a cocktail-milkshake mashup called the Chrissy.
If you don’t come for the seafood, come to this restaurant for the best view of Mobile Bay and downtown from the top of the Trustmark Building.
Sure, you know that Mobile is the birthplace of Mardi Gras in America, but there’s so much more to learn, and class is in session at the Mobile Carnival Museum. While you’re in a Mardi mood, check out a newer addition to the city, Mardi Gras Park.
If you have little ones or are a history buff yourself, a trip down to the USS Alabama Battleship is an essential part of a Mobile stay.
Even if you don’t stay at The Battle House, it’s a gorgeous piece of Mobile history to see, especially for those who love architecture. The 1852 building has whisper arches the kids will be tickled with, and the family can enjoy a meal at one of three on-site restaurants.
Gardeners should this historic estate for fantastic azaleas in the spring, and families can’t miss the Magic Christmas in Lights event every holiday season.
I know—who wants to spend time in a dark theater while on vacation? I get it. But if you happen to catch a rainy day (which, let’s be honest, is quite likely in Mobile), a showing at this independent theater should be your first move. Before each movie, a staff member will tell the audience a bit about the film, making for a more meaningful viewing experience. Plus, it’s right in the heart of downtown’s entertainment district, so there’s plenty nearby to see, eat, and drink afterward.
If it’s pleasant outside, you can’t beat sitting on the BLUEGILL patio, listening to live music, and enjoying a cold beer and hot fried seafood. The Flaming Oysters are a requirement, and I don’t want to hear any ifs, ands, or buts about it.
Mobilians know that if you want crawfish, there is no place better than R&R. Trust me and order them spicy.
Felix’s is the slightly dressier cousin to the more casual seafood dives on the Causeway, making it an ideal date spot with the prettiest sunset views.
These locales range from a swanky speakeasy to a dive bar with live music and everything in between. Find the vibe you’re looking for, sit back, and enjoy the people watching.
A goose mascot wearing Mardi Gras beads and leading a second line of elected officials through the foyer of the Mobile Chamber can only mean one thing: Wawa has landed in southwest Alabama, and lots of people are very happy about it.Executives with the convenience store chain, an East Coast company that spread down into Florida over the last decade, announced back in April that they had set their sights on a major expansion campaign across the Florida Panhandle and into coastal Alabama. Friday morning, they held a press conference in ...
A goose mascot wearing Mardi Gras beads and leading a second line of elected officials through the foyer of the Mobile Chamber can only mean one thing: Wawa has landed in southwest Alabama, and lots of people are very happy about it.
Executives with the convenience store chain, an East Coast company that spread down into Florida over the last decade, announced back in April that they had set their sights on a major expansion campaign across the Florida Panhandle and into coastal Alabama. Friday morning, they held a press conference in Mobile followed by another Friday afternoon in Spanish Fort to lay out some details of that plan and to reveal where Alabama’s first Wawas will be built.
Related: Wawa is coming to Alabama. So what’s a Wawa?
So who gets the area’s first Wawas? In Mobile, it’s some lucky folks out in west Mobile. Company officials revealed Friday that the first two Mobile stores will be built at the intersection of Cottage Hill and Sollie Roads, and the intersection of Schillinger Road and Old Government Street Road. (The latter site is near the Walmart supercenter on Schillinger south of Airport Boulevard.)
In Baldwin County, the four locations announced Friday are at U.S. 98 and Baldwin 44 (Twin Beech Road) in Fairhope; Ala. 181 and Ala. 104 in Fairhope; U.S. 98 and Johnson Road in Daphne; and Ala. 59 and Baldwin 48 in Robertsdale. The Alabama locations follow two Pensacola sites announced Thursday.
And when will they open? The first should be in business within a year from now, company representatives said.
When it comes to expansion, Wawa doesn’t play: Robert Yeatts, senior director for store operations in Florida and new markets, said the company decided to enter Florida about 10 years ago. Now it has 250 stores there, employing more than 10,000 associates.
The scheme for the Mobile-Panhandle region is a little more modest: 40 stores over the next eight to 10 years. In the Mobile area, the two confirmed sites soon will be followed by three to four that are now under consideration, Yeatts said.
The impacts add up: Company officials said Wawa will invest about $6.5 million per store, with about 140 contractors employed on each site. Each store will employ around 35 associates, with salaries starting at $15 per hour. Multiply that by the 40 stores planned for the region and it adds up to an investment of around $260 million and 1,400 new jobs.
Like Buc-ee’s, Wawa has legions of zealously enthusiastic fans, though the two companies’ business plans are considerably different. Where Buc-ee’s store are megasites beckoning interstate travelers with scores of gas pumps, Wawa doesn’t prioritize highway locations. Its stores are built on the scale of many other gas and convenience chains. But it has built its reputation by standing out in several categories, including cleanliness, the quality of its fresh foods and groceries, and the appeal of its hoagie sandwiches, ordered through a sophisticated touchscreen system that lets customers order exactly what they want. Other deli foods include a breakfast menu that also has some hard-core fans.
“Hoagie” might not be a term that comes naturally to Alabama residents, said Director of Store Operations Steve Hasher, but “we’re here to sink the sub, that’s for damn sure.”
Wawa was founded as a dairy market in a small Pennsylvania town of that name in 1964 and now has 1,000 stores in six states, employing 45,000 associates, Hasher said.
Other aspects of its operation that set it apart are an employee-ownership plan, under which associates own about 40% of the company; and philanthropy that includes an emphasis on fighting hunger. In Mobile, the company has opted to partner with USA Health Children’s and Women’s Hospital and with the Coast Guard foundation.
Chamber President and CEO Bradley Byrne said Wawa’s decision to come into the region was “the ultimate affirmation” that the Mobile area has a promising economic outlook. Mobile Mayor Sandy Stimpson told company representatives that “you can count on us to deliver” needed support.
Information about jobs can be found at https://www.wawa.com/careers. The company site also presents extensive information about site selection.
The University of South Alabama Health Care Authority is buying Providence Hospital from St. Louis-based Ascension and its clinics in an $85 million transaction expected to be completed later this fall.The transaction was approved by the USA Board of trustees during its meeting Tuesday in Mobile.“This is a very exciting day for health care in the Mobile region,” said Owen Bailey, CEO with USA Health. “We’re excited about what Providence Hospital brings to the table. Our goal is a smooth transition of ser...
The University of South Alabama Health Care Authority is buying Providence Hospital from St. Louis-based Ascension and its clinics in an $85 million transaction expected to be completed later this fall.
The transaction was approved by the USA Board of trustees during its meeting Tuesday in Mobile.
“This is a very exciting day for health care in the Mobile region,” said Owen Bailey, CEO with USA Health. “We’re excited about what Providence Hospital brings to the table. Our goal is a smooth transition of services with little disruption.”
The acquisition will allow the healthcare authority to acquire the 349-bed, 11-story Providence Hospital facility on Airport Boulevard and its related sites of care, including physician practices of Ascension Medical Group. Providence is a full-service facility with 24/7 emergency care, a Level III trauma center, an outpatient diagnostic center, and a freestanding rehabilitation and wellness center.
USA and Providence Hospital will continue to operate independently until the transaction is finalized.
Dr. John Marymont, vice-president for medical affairs and dean of the Frederick P. Whiddon College of Medicine at the University of South Alabama, said there are no plans for layoffs. Providence currently employs around 2,100 employees, he said.
“Quite the contrary,” Marymont said. “We welcome them to our family. We have great aspirations of a smooth transition and offering more services and opportunities of health care needs for Alabama and the Gulf Coast. I think this will enhance both hospitals.”
Marymont said that USA Health and Ascension had been in talks for the past six years about a possible partnership, and said he was confident about the transaction. Ascension Health, a 138-hospital system in 19 states, closed its last fiscal year with a $1.8 billion net loss, amid soaring operational costs.
“We have done an extreme amount of due diligence and we are confident in the evaluation of the opportunity,” Marymont said.
Bailey said for USA Health, the past five years have been “a period of explosive growth,” which he said has seen the health system grow from approximately seven locations in 2016 to 30 or so within the Mobile area.
USA Health is the only academic health system along the upper Gulf Coast, and operates University Hospital in Mobile, Children’s & Women’s Hospital, and the Mitchell Cancer Institute.
“We are at and exceeding capacity at our hospitals at USA Health,” said Bailey. “This (transaction) is about having three hospitals instead of two and what that means about more options to place patients. Instead of being a negative, it will be a positive.”
He added, “When you are growing at a rate we are growing, you need to make key decisions on what is best for patients.”