Houston-based Nobilis Health has entered into an agreement to acquire Victory Medical Center Houston, a surgical hospital located near the Texas Medical Center.
Nobilis, formerly Northstar Healthcare, will acquire a controlling stake in the hospital for cash consideration of $1.5 million and the assumption of capital leases totaling approximately $2.4 million, according to a news release. In addition, Nobilis will extend credit to the hospital and assume certain payment obligations to the hospital from The Woodlands, Texas-based Victory Healthcare.
"This acquisition continues the company's strategic plan for 2015 to acquire an in-network hospital option for our providers, patients and branded procedures," Nobilis CEO Chris Lloyd said in a statement. "With Nobilis' nationwide and international reach through its marketing programs, having an in-network hospital will allow us to capture revenues from in-network leads generated from our marketing programs. The hospital's location, size and capabilities means the hospital can accommodate patients not only in the Houston area but from all over the country."
Nobilis President Harry Fleming said the company expects to provide an immediate positive impact on the hospital revenues.
After this acquisition, Mr. Fleming said, Nobilis will continue to look for opportunities that can benefit from its marketing programs but will also broaden its search to include larger, profitable companies "that fit within the Nobilis business model."
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