Executives with Houston Methodist and Christus Health in Irving, Texas, have signed a letter of intent, in which Houston Methodist would acquire majority ownership of two Christus hospitals located just outside Houston.
Under terms of the transaction, Christus Health would sell Christus St. Catherine Hospital in Katy, Texas, and Christus St. John Hospital in Nassau Bay, Texas. However, Christus would still retain a minority interest and have some governing oversight. The precise percentages for Houston Methodist and Christus Health are still being hammered out and will be announced when a definitive agreement is reached.
Christus St. Catherine Hospital would most likely be turned into a post-acute care facility, while Christus St. John Hospital would remain as a full-service acute-care provider. However, plans for Christus St. Catherine have not been finalized, and Christus may still have the option to operate St. Catherine as a post-acute care facility on its own.
Once the deal closes, expected to happen by the end of this year, Houston Methodist would own and operate seven hospitals. Houston Methodist Hospital is the system's flagship and one of the primary academic medical centers in Houston.
Houston Methodist President and CEO Marc Boom, MD, and Christus Health President and CEO Ernie Sadau said in a news release the transaction would benefit both organizations, which have "longstanding commitments to the Houston community."
More Articles on Hospital Transactions:
SCL Health System to Form Joint Venture With National Jewish Health
Providence Reaches Agreement to Take Over Saint John's Health Center
Duke LifePoint Eyes Joint Venture With Rutherford Regional