University General Health System, Inc., a diversified, integrated multi-specialty health care delivery system, today announced that it has executed an agreement to purchase South Hampton Community Hospital in Dallas, Texas, effective December 31, 2012. The hospital is a 111-bed general acute care facility located less than 10 miles southwest of downtown Dallas. The hospital currently has the ability to provide patient services centered around the following areas of specialization:
- Bariatric
- Emergency Medicine
- Intensive Care
- Diagnostic Imaging
- Laboratory Services
- Orthopedic
- Pain Management
- Physical Therapy
- Respiratory Therapy
- Sleep Lab
- Speech Therapy
- Wound Care
The hospital has five operating rooms, plus an endoscopy lab, where the following surgical procedures are capable of being performed:
- Bariatric Surgery
- Colorectal Surgery
- General Surgery
- Minimally Invasive Surgery
- Orthopedic Surgery
- Podiatric Surgery
- Urological Surgery
The hospital currently has 270 physicians on its medical staff roster and an affiliated 22,000 square-foot medical office building that is approximately 55% occupied. University General has agreed to acquire the facilities and operations for $30 million. Texas-based Houston National Bank is expected to finance $28.5 million of the purchase price. The transaction is expected to close on or before December 31, 2012.
“This expansion into Dallas and the South Hampton community represents an opportunity for University General Health System to further replicate the existing physician-centric, multi-specialty, integrated, diversified regional health care delivery system we have successfully established in the Houston metropolitan area,” stated Hassan Chahadeh, M.D., the Company’s Chairman and Chief Executive Officer. “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. We expect the South Hampton Hospital to contribute at least $40 million to the Company’s revenue and $15 million to adjusted EBITDA in the year ending December 31, 2013.”
“South Hampton Community Hospital will be renamed and re-branded in early 2013 as University General Hospital – Dallas,” commented Donald Sapaugh, President of University General Health System, Inc. “We plan to fund at least one million dollars 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, which University General considers an important competitive advantage in the marketplace.”
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