Foun­da­tion Health­Care buy­ing Texas hos­pi­tal out of bank­ruptcy

Modern Healthcare - - REGIONAL NEWS - —Me­lanie Evans

Foun­da­tion Health­Care, a for-profit sur­gi­cal hos­pi­tal com­pany, will ac­quire a Hous­ton hos­pi­tal from Univer­sity Gen­eral Health Sys­tem, which en­tered Chap­ter 11 bank­ruptcy in Fe­bru­ary.

Ok­la­homa City-based Foun­da­tion Health­Care owns and op­er­ates sur­gi­cal cen­ters and am­bu­la­tory sur­gi­cal cen­ters in six states, in­clud­ing Texas. The pub­licly traded com­pany will ac­quire Univer­sity Gen­eral Hos­pi­tal Hous­ton for $33 mil­lion in a court-ap­proved sale.

The deal adds to Foun­da­tion’s Hous­ton-area as­sets, which in­clude seven am­bu­la­tory surgery cen­ters and one sur­gi­cal hos­pi­tal, ac­cord­ing to a com­pany news release.

Univer­sity Gen­eral Health Sys­tem en­tered bank­ruptcy in Fe­bru­ary in an ef­fort to pro­tect the 69-bed Hous­ton hos­pi­tal from the fate of the fail­ing com­pany’s Dal­las hos­pi­tal, which closed last year. The sys­tem made a string of ac­qui­si­tions but never achieved its pro­jected vol­umes or rev­enue. The Hous­ton hos­pi­tal had net rev­enue of more than $70 mil­lion last year, ac­cord­ing to court records. Foun­da­tion ended last year with an op­er­at­ing in­come of $2 mil­lion on rev­enue of $101.8 mil­lion.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.