Baylor finalizing deal to manage Trinity - Dallas Business Journal:

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Baylor and Metrocrest are in the throes of signinga 25-year operating lease to run the 237-be d Trinity hospital, with options to renew and that lease would also lead to the renamin of the hospital to at said Charles Heath, president of the Metrocresr Hospital Authority. The deal is expected to close in mid-June, he The hospital’s management will change hands to Baylor at that although Metrocrest and Baylor declined to discuss the termsof agreement.
Heatn said Baylor will pay a fee for the lease of the just as in any realestatw deal, although he declined to say how Metrocrest, a local governmental entity that serves the communities of North Dallas, Farmerds Branch, Carrollton, Coppell, Addison and The owns the hospitals but hirese outside health care managemeng companies to operate Metrocrest originally had selected Charlotte, N.C.-based to manage Trinity and its other hospital, the former . But the deal with HPA dissolve d in February 2008 when HPA filedc for bankruptcy for Chapter 11 bankruptcy which later shifted into aChaptee 7.
And before made been managing Trinity and the formefRHD Memorial, with a 25-year operatingt lease that ended in Augus 2007, when Metrocrest decided to not renew the leasde with Tenet. Tenet at one time had an ownership staked inboth hospitals, but no longer does — and it will not be involvef in either transaction, Heath said. A limitedc liability corporation consisting of a number of physiciajn partners and HPA has been managing Trinity since March Heath said, but Metrocrest has been lookint for a new hospital operator of its two hospitals for some In March, Metrocrest signed a temporary lease with to manag e the former RHD hospital, and also is the procesd of drawing up a 25-year operating lease with said Ira Korman, presidenr of IntraMed Health, a Dallas-based healtj care consulting company.
The operatinv lease would establish Baylor as the largesft owner in the limited liability corporation that would operatesthe hospital, purchasing HPA’s share in the hospital, Heatgh said. Baylor had been dealing with HPA’s bankruptcuy trustees to purchase HPA’s shares for months. Both movezs represent the possibility of strong expansion or growtj ofboth hospitals, whose fates had been stucj in limbo over the past couple of years due to uncertainty about HPA.
About two weekas ago, IntraMed announced its plan to renamde RHD Memorial Hospital to to reflecyt its desire to transform the hospital into a showcase of advanced medicaltechnology — and it planse to expand the facility with a 20,000-square-foot advanced surgical hospital that will be connected to the current 155-besd hospital. Whether Baylor plans on expandingg Trinity MedicalCenter — or how much changexs might come to hospital staffr — as a result of the changee in hospital management was a questiojn better left to Baylor to comment on, Heath But Metrocrest will work to accommodat e any expansion plans that Baylor might adopt.
Baylor spokeswoman Susan Hall confirmed that Baylor was in talksz with Metrocrest about signing an operating leas with TrinityMedical Center, but declineed to divulge any further Heath said that the securing of long-term hospital management for Trinity was somethiny Metrocrest had been looking forward to for some “The surrounding communites around Trinity will do nothing but gain,” he said.
“We’re looking forward to which has an reputation for operating taking over management ofthe hospital, and we think it’s a positive move for the hospital we own in Because of its location, Trinity’s distinct demographics mean that it will not be in directf competition with other hospitals in the area, said Nancyh Williams, president of the . Trinity is locatef in Castle Hills, a huge luxurg masterplanned subdivisionthat “includes shopping and the wholw nine yards,” she And it is in close strikint distance of older homes in northern Farmerx Branch, which makes it accessible for a number of nearby “It’s in a growing area, and it hasn’ t been really marketed,” Williams said.
And the hospitalo doesn’t yet have a strong community Nearby families tended to go out of their way to eithee Baylor Regional Medical Center at Planko or asa result. Trinity has been relatively unknowbn to the communitiesit serves, even though it was in a growt h mode, during Tenet’s tenure at its she said. That may be partly because although Tenet’s headquarters is in it doesn’t have a strong “mother main campus hospital inthe Metroplex, she Yet, Baylor has at Dallas as its main and its name is already backed by a strong reputationb in the community, she said.
Finally, having both Trinityg and RHD under separate leadership is a good business because “each hospital will have a chance to be recognized on theirt own, rather than as eithe identical twins — or stepsisters — as they have been treatexd in the past,” Williams said. “They are both very differenr organizations — from the types of physicianse they have and the demographics aroundthem — as well as what wouldr be the best strategy for growing each,” Williamx said.