The Metrocrest Hospital Authority announced today that it has selected Hospital Partners of America to manage Trinity Medical Center and RDH Memorial Medical Center. The two hospitals are operated by Tenet Healthcare Corporation under a 25-year lease that expires in August 2007.
"The Hospital Partners proposal did the best job of addressing our goals, including keeping both hospitals as full-service providers, allowing the hospital authority and physicians more say in hospital operations, maintaining the current staff and positioning the hospitals for success in the future," said Dr. Richard Rivera, chairman of the hospital authority board of directors.
Hospital Partners of America, Inc. (HPA) is a privately held health care services company based in Charlotte, N.C. The firm owns and operates general acute care hospitals in partnership with physicians throughout the country.
"We believe we have identified a partner who is truly as committed as we are to the success and growth of our hospitals and shares our commitment to the community they serve," said Charles B. Heath, president of the Metrocrest Hospital Authority.
"We are committed to investing in Trinity, RHD and their employees. We believe that our model, which emphasizes the provision of quality care and a close working relationship with area physicians, will be effective in allowing these two hospitals to continue as major health care resources for the community," said Todd Johnson, president and chief executive officer of Hospital Partners of America.
Under terms of the proposal, local physicians can become partners in the two hospitals with the ability to purchase up to 25 percent of a limited liability partnership for each hospital. The hospital authority would own up to 15 percent with Hospital Partners owning the rest.
"HPA intends to offer ownership to a large group of physicians and also involve the physicians in the ongoing governance of the hospital," said Johnson.
Tenet currently leases the hospital with no participation in management by physicians or the hospital authority. The current lease required the hospital authority to announce its plans one year in advance of the awarding of a new contract.
"We expect a smooth transition," said Dr. Rivera. "The contract terms call for the new operator to retain current employees and contracts during a transition phase and Hospital Partners has an excellent track record of taking over and improving hospitals across the country."
"Our company recently acquired the 246-bed Redding Medical Center in Redding, California, from a subsidiary of Tenet Healthcare Corporation," said Johnson. "That transition went smoothly and we expect the same in Dallas."
"We appreciate the hard work of everyone involved in these decisions," said Dr. Rivera. "The board was presented with a number of excellent proposals and it took a great deal of hard work and study to determine the best one for the community."
