Community Health Systems, Inc., one the largest publicly-traded hospital companies in the United States, has executed a definitive agreement to acquire the assets of Tomball Regional Medical Center, in Tomball, Texas.
Located approximately 30 miles northwest of Houston, the 358-bed hospital sits on a 155-acre campus that includes a cancer center, heart center, women's health center, outpatient surgery centers and sports medicine center. The hospital, currently a not-for-profit facility, will convert to taxable status after the acquisition. The financial terms of the deal were not disclosed.
[See also: Community Health Systems acquires northeast Pennsylvania health system.]
When the acquisition is complete, Tomball Regional Medical Center will become the 19th CHS-affiliated hospital in Texas. According to CHS officials, the company has committed to make capital investments of at least $50 million over five years to expand clinical programs and to renovate and expand existing facilities and infrastructure at TRMC.
Lynn LeBouef, TRMC’s president and CEO, said the capital infusion would allow the facility to acquire advanced medical technologies and pursue development strategies, such as physician recruitment and practice acquisitions. He said the acquisition agreement also includes commitments that will provide “substantial support” to local community efforts.
LeBouef said additional covenants in the agreement assure that active employees in good standing at the time the transaction closes will be hired into their same positions, at the same rate of pay and with their seniority recognized.
The leadership of TRMC agreed that an acquisition made sense primarily to “counter the challenges we’ve faced related to the impact of healthcare reform and increased competition from nearby hospitals,” LeBouef said.
CHS currently operates 133 hospitals in 29 states with an aggregate of approximately 19,500 licensed beds.
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