Dallas’ South Hampton Community Hospital Sold to Houston-based University General in $30 Million Deal

South Hampton Community Hospital has agreed to be acquired by Houston-based University General Health System in a $30 million deal that’s expected to close Dec. 31, 2012. It will be the first Dallas location for University General.

The 111-bed, acute care facility in Oak Cliff, at 2929 South Hampton Road, previously operated as Renaissance Hospital. It has five operating rooms and about 270 physicians on staff. It also operates a freestanding 22,000-square-foot medical building, which is about half-occupied.

South Hampton is the only hospital in North Texas to receive an “F” rating from The Leapfrog Group in its most recent rankings.

 Hassan Chahadeh, MD, chairman and CEO of University General, said in a statement that he expects South Hampton to generate $40 million in revenue next year and contribute $15 million in adjusted earnings for 2013.

“We believe expansion into the Dallas market and the current leadership at South Hampton Community Hospital will be highly complementary to our long-term strategic growth plan,” he said.

The hospital will be rebranded in early 2013 as University General Hospital-Dallas. It will also get a $1 million infusion, said Donald Sapaugh, president of University General.

“We plan to fund at least $1 million in capital investments and to supply working capital, as needed, to assure that the hospital can provide first-class concierge health care service in a five-star environment,” he said.

University General operates one hospital, two ambulatory surgical centers, a number of diagnostic imaging and physical therapy clinics, two sleep clinics, and a hyperbaric wound care center in the Houston area. It also owns three senior living facilities, manages six senior living facilities, and a support services company that provides revenue cycle and luxury facilities management services. The company’s over-the-counter stock trades as UGHS.

Posted in Hospitals, Physicians.