Houston-based University General Health System is closing its 111-bed University General Health – Dallas weeks after saying it had several potential buyers for the facility, according to a Houston Chronicle report.
UGHS recently announced it would sell the acute-care hospital, which it acquired in December 2012 for $30 million. But a spokesperson from the Texas State Department of Health Services told the Chronicle UGHS notified the department of its plans to close the hospital last week. Texas regulations allow hospitals to close at the time of notification if medical records are secured and patients have been transferred elsewhere or discharged.
Although he did not specify when the system began closing the hospital, UGHS President Don Sapaugh told the Chronicle patients are no longer being treated there. He did not specify the number of employees affected.
Earlier this month, in an interview with the Dallas Business Journal, Mr. Sapaugh said the system was "not contemplating closing the hospital." At that time, UGHS had temporarily laid off more than 100 hospital employees over 30 days to reduce costs.
Much of the hospital's revenue came from Medicare and Medicaid, and UGHS CEO and Chairman Hassan Chahadeh, MD, said the hospital experienced ongoing financial problems, according to the report. In August, UGHS eliminated nearly 100 jobs, a reduction attributed to the system's purchase of UGH – Dallas two years ago, according to the Chronicle.