Methodist Health System in Dallas has reached a deal to buy the bankrupt Forest Park Medical Center in Southlake, Texas, for $17.6 million, according to a Fort Worth Star-Telegram report.
Here are five things to know about the transaction.
1. Under the deal, Methodist is offering to pay $9 million for the hospital operator's assets and take on $8.6 million in debt, according to the report, which cites court documents. Methodist would own a 51 percent stake in the hospital operation, with the physician investors retaining the other 49 percent.
2. Court records indicate Methodist was the only prospective buyer to sign a formal letter of intent, although at least 13 parties at one time showed interest in buying the 54-bed facility, according to the report.
3. The deal must still be approved by U.S. Bankruptcy Judge Russell Nelms.
4. The hospital hopes to close the deal by late May.
5. At the same time Methodist made the exclusive offer for Forest Park Medical Center in Southlake, it is also pursuing bankrupt Forest Park Medical Center in Fort Worth, Texas. According to the report, Methodist has offered at least $107 million for the Forest Park hospital in Fort Worth, and is in a bidding war with Arlington-based Texas Health Resources, which has pledged $112 million, and possibly Nashville, Tenn.-based Hospital Corporation of America.
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