The Methodist Health System has completed the purchase of the operations of the Forest Park Southlake facility, marking the Oak Cliff-based system’s westernmost expansion.
The nonprofit healthcare provider has rebranded the facility as Methodist Southlake Hospital and now owns 51 percent of the operation. The physician investors own the remaining 49 percent. A Tarrant County bankruptcy judge approved the $17.6 million sale on Tuesday afternoon. Methodist paid $9 million in cash for the assets and assumed $8.6 million in outstanding debts.
The California-based Griffin American Healthcare REIT remains the owner of the hospital itself; Methodist will be the rent-paying tenant and operator. Methodist Southlake marks the second full-service acute care hospital run by the nonprofit health provider in Tarrant County, the other being in Mansfield. Methodist made a run at the Fort Worth facility but appears to have been outbid by competitor Texas Health Resources. A judge will approve or deny that sale during a hearing on Thursday.
But in the meantime, Methodist will move into the 142,000 square foot hospital, which features 54 private inpatient rooms, 10 family suites, six intensive care rooms, and 12 advanced fully integrated operating suites. It opened in 2013. Stephen Mansfield, the CEO of Methodist, says the system is considering adding an ambulatory surgical center on the site as well. He also said he plans to retain all of the staff that have been working at the hospital.
“From the moment we first met with the Board, physicians and staff, we knew this was a truly special medical center,” Mansfield said in a prepared statement. “We were very impressed with the community of Southlake and recognize it is a growing, thriving city that cares about its people. Methodist Health System feels very privileged to partner with Methodist Southlake Hospital as it continues to offer world-class service to its patients.”
The operations will be managed in a joint venture with Kansas-based Nueterra Healthcare, which also helps operate Methodist’s surgical hospitals in Addison and McKinney. This is Methodist’s ninth hospital in North Texas.
Mansfield says the system is interested in the also-bankrupt Forest Park Dallas, the chain’s shuttered flagship near U.S. 75 and the LBJ Freeway. All six of Forest Park’s hospitals have filed for bankruptcy. HCA North Texas bought the Frisco hospital, and Austin’s St. David HealthCare purchased the never-opened facility there.