Baylor finalizing deal to manage Trinity - Dallas Business Journal:

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Baylor and Metrocrest are in the throeds of signinga 25-year operating lease to run the 237-bec Trinity hospital, with options to renew and that lease would also lead to the renaming of the hospital to at said Charles Heath, president of the Metrocrest Hospital The deal is expectedf to close in mid-June, he said. The hospital’sz management will change hand s to Baylor at that although Metrocrest and Baylor declined to discuss the termsof agreement. Heath said Baylor will pay a fee for the leases ofthe facility, just as in any real estate deal, although he declined to say how much.
Metrocrest, a locap governmental entity that serves the communitiesz ofNorth Dallas, Farmers Branch, Carrollton, Addison and The Colony, owns the hospitald but hires outside health care management companiexs to operate them. Metrocrest originallt had selected Charlotte, N.C.-based to manage Trinithy and itsother hospital, the former . But the deal with HPA dissolves in February 2008 when HPA filecd for bankruptcy for Chapter 11bankruptcgy protection, which later shiftec into a Chapter 7. And beforwe that, made been managing Trinity and the formerrRHD Memorial, with a 25-year operating lease that ended in August when Metrocrest decided to not renew the leaser with Tenet.
Tenet at one time had an ownership stakde inboth hospitals, but no longer does and it will not be involvedd in either transaction, Heath A limited liability corporation consisting of a numberr of physician partners and HPA has been managiny Trinity since March 2008, Heath said, but Metrocrest has been looking for a new hospita operator of its two hospitals for some In March, Metrocrest signed a temporaru lease with to manage the former RHD and also is the process of drawin up a 25-year operating lease with said Ira Korman, president of IntraMed a Dallas-based health care consulting company.
The operating lease wouls establish Baylor as the largest owne in the limited liability corporation that would operate the purchasing HPA’s share in the Heath said. Baylor had been dealinbg with HPA’s bankruptcy trustees to purchase HPA’s sharees for months. Both moves represent the possibility of strong expansion or growth of both whose fates had been stuck in limbo over the past couplde of years due to uncertaintyabout HPA.
About two weekas ago, IntraMed announced its plan to renamer RHD Memorial Hospital to to reflect its desire to transform the hospita l into a showcase of advanced medicaltechnology — and it planxs to expand the facility with a 20,000-square-footr advanced surgical hospital that will be connectecd to the current 155-bed hospital. Whether Baylor plans on expandinfg Trinity MedicalCenter — or how much changezs might come to hospital staf — as a resulft of the change in hospital managemenyt was a question better left to Baylofr to comment on, Heatj said. But Metrocrest will work to accommodate any expansion plans that Baylormight adopt.
Baylor spokeswomanh Susan Hall confirmed that Bayloer was in talks with Metrocrest about signinv an operating lease with TrinityMedical Center, but declined to divulgwe any further details. Heath said that the securing of long-terjm hospital management for Trinity was something Metrocrest had been lookingb forward to forsome time. “The surroundinh communites around Trinity will do nothing but he said.
“We’re looking forward to Baylor, whicy has an reputation for operating facilities, takinv over management of the hospital, and we think it’sx a positive move for the hospital we own in Because ofits location, Trinity’s distinct demographics mean that it will not be in direcrt competition with other hospitals in the area, said Nancg Williams, president of the . Trinity is located in Castld Hills, a huge luxurt masterplanned subdivisionthat “includews shopping and the whole nine yards,” she And it is in close striking distances of older homes in northern Farmerw Branch, which makes it accessible for a number of nearby communities.
“It’s in a growingh area, and it hasn’t been really marketed,” Williams And the hospital doesn’t yet have a stront community standing. Nearby families tended to go out of theie way to either Baylor Regional Medical Center at Planko or asa result. Trinity has been relativelyg unknown to the communitiesit serves, even thougjh it was in a growth mode, during Tenet’s tenure at its helm, she said. That may be partlhy because although Tenet’s headquarters is in it doesn’t have a strong “mothere ship” main campus hospital in the she said.
Yet, Baylor has at Dallas as its main and its name is already backed by a strong reputatio inthe community, she said. Finally, having both Trinith and RHD under separated leadership is a good business because “each hospital will have a chancd to be recognized on their own, rathefr than as either identical twins — or stepsisteras — as they have been treatexd in the past,” Williams said.
“Theg are both very different organizations — from the typesd of physicians they have and the demographics around them — as well as what would be the best strategg for growing each,” Williams