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UHS Halts Purchase of Knapp Medical Center Following Battle Over Non-Profit Status

The potential sale of Knapp Medical Center in Weslaco, Texas, to South Texas Health System in Edinburg, Texas, the local branch of Universal Health Services in King of Prussia, Pa., has halted, according to a Brownsville Herald report.

According to the report, the sale, which was announced in November 2011, has been in limbo since December 2011 when the city council revealed a clause attached to a 1987 deed that required the hospital to stay a non-profit entity. This clause disallows the acquisition by for-profit Universal Health Services. A battle resulted between Knapp's board of directors and the city of Weslaco's hospital authority board, which had the power to remove the deed.

The contract for the pending sale expired Feb. 29, which allowed either party to walk away from the deal. UHS did so this week, according to the report.

Knapp's leaders have tried various options to persuade the Weslaco hospital authority including an offer of $5 million as well as a lawsuit. According to the report, Knapp's board of directors will continue to pursue the lawsuit despite losing UHS' offer.

More Articles on the Knapp Medical Center Acquisition:

Weslaco, Texas City Council Opposes Sale of Knapp Med Center to UHS
Universal Health Services to Acquire Texas' Knapp Medical Center

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