Texas Health Resources has finalized the purchase of Forest Park Medical Center Fort Worth, giving the health care giant a stronger presence in the growing southwest sector of Fort Worth.
Texas Health paid $116.5 million for the 150,000-square-foot hospital located at 5400 Clearfork Main St., and another $4.5 million to the operating company for the releases necessary to take full control of the facility and begin operations. Arlington-based Texas Health plans to reopen the facility as a wholly owned Texas Heath location. In a separate deal, Texas Health also purchased all equipment at the Forest Park location.
“Growth in Tarrant County fits with our strategic initiatives and our mission to improve the health of the people in the communities we serve,” said Barclay E. Berdan, CEO of Texas Health Resources. “The former Forest Park facility is in an ideal location and will allow us to offer North Texans more choices for their health care needs. And given that our two Fort Worth hospitals are consistently full, this will provided some much needed capacity.”
The purchase includes the hospital with 54 beds and 12 operating rooms, a medical office building and a parking garage. It is expected to become licensed as a department of Texas Health Southwest Fort Worth, which is located less than five miles away.
“We think this facility has the opportunity to prosper and become known for providing some of the top care in the region,” said Berdan.
The purchase further grows Texas Health’s network of hospitals and outpatient centers, which serve more than seven million residents in 16 counties in Dallas-Fort Worth. Berdan said he expects the hospital to be closed from 30 to 45 days allowing Texas Health to receive the necessary operating licenses,
On Tuesday, the Forest Park owners let go the remaining staff at the hospital. Berdan said Texas Health will offer to help those laid off find other open positions with Texas Health until the Forest Park facility can be reopened.
Unlike how the hospital was operated under the previous owners, Texas Health says the new facility will be in-network for all commercial payers, Medicare and other government payers like Tricare along with offering the same charity care policy as the system’s other hospitals. In 2015, Texas Health provided $200 million in uncompensated care to Tarrant County.
“Many of the physicians who practice at the Forest Park facility also practice at one or both of our Fort Worth hospitals and we look forward to continuing a strong relationship with them in the years to come,” Berdan said. “With such a strong medical team, we are confident this facility will help Texas Health to provide great options for North Texans’ health care needs.”
The high-end Forest Park Medical Center concept was designed to attract a well-heeled clientele attracted by the tony feel of the hospitals with natural lighting, resort décor and private rooms.
Sabra Health Care REIT Inc., which eventually invested $284.4 million in the hospitals in Southlake, Fort Worth, Dallas and Frisco, said they faltered because the hospitals focused on private insurance patients and eschewed – at least initially – Medicare or Medicaid patients.
Texas Health initially offered $112 million for Forest Park’s Fort Worth facility, but found itself in competition with Methodist Health Systems of Dallas. Methodist, which has a hospital in Mansfield, did purchase the Forest Park Medical Center in Southlake.