HCA North Texas plans to purchase Forest Park Medical Center in Frisco from SABRA Health Care REIT Inc. and Forest Park Medical Center at Frisco LLC, according to Irving-based HCA North Texas.
The transactions are subject to closing conditions, including court approval of the sale by FPMC Frisco, among other regulatory approvals. The total cash purchase price was $96.25, according to SABRA Health Care. Closing is expected on or about March 31, 2016.
“We look forward to working collaboratively with physicians and clinicians to deliver a responsive, efficient, patient care environment at this facility,” said Erol Akdamar, president, HCA North Texas Division, commenting in a news release.
When complete, the acquisition will mark another milestone in an unprecedented era of growth for HCA North Texas. In the past year, the health system has opened the full service Medical Center Alliance hospital, acquired the CareNow urgent care network, and added new trauma programs across its 12 hospitals allowing the health system to maintain and expand its commitment to the care and improvement of life for the North Texans.
HCA North Texas oversees 15 hospitals and 79 patient care sites and offers more than 5,500 active physicians and 15,000 employees in Dallas-Fort Worth and Oklahoma.
Commenting on the agreement to sell the Frisco Hospital, Rick Matros, CEO and hairman of owners SABRA Health Care said, “We are pleased to be able to move forward and focus on building the company as we have these last 5 years, Forest Park notwithstanding. The expected range of loss is consistent with our discussion of a potential sale scenario during our last earnings call. In addition to putting this behind us, we will utilize the net proceeds from this sale to reduce leverage by paying down our revolving credit facility.”
Matros also said the company hopes to resolve issues related to the ownership of the hospitals in Dallas and Fort Worth. “Given our first lien collateral position in those debt investments relative to the estimated property valuations, our investment in those two assets is more secure than the Frisco Hospital, which we owned,” he said. “We expect to provide an update on the status of those two debt investments as soon as we have information ready to publicly disseminate. We anticipate utilizing the proceeds from the resolution of those investments to make additional payments under our revolving credit facility or to fund additional investments.”
The Fort Worth hospital, located in the Clearfork development, filed for Chap. 11 bankruptcy in November. Last year, SABRA officials said the company had buyers interested in the property.
More information is available at hcanorthtexas.com.