Foundation HealthCare buying Texas hospital out of bankruptcy
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.