King of Prussia, Pa.-based Universal Health Services has decided not to lease North Texas Medical Center in Gainesville and will cancel its management agreement with the hospital May 1, according to the Gainesville Daily Register.
North Texas Medical Center, which is owned by the Gainesville Hospital District, approved a partnership agreement with UHS in December 2016. The agreement called for UHS to first take over operations of the distressed hospital and then lease the five buildings on North Texas Medical Center's campus.
In early 2017, while negotiations with UHS continued, North Texas Medical Center filed for Chapter 9 bankruptcy — a bankruptcy proceeding that offers distressed municipalities protection from creditors while a repayment plan is negotiated. The bankruptcy court allowed UHS to provide financial support to the hospital during the course of the bankruptcy case.
On Monday, Gainesville Hospital District board members said UHS would not move forward with the lease deal and would terminate the management agreement May 1.
"[UHS] has pledged its continued desire to work closely with NTMC, and they have pledged a smooth transition," Lynn Peters, a Gainesville Hospital District board member, told the Gainesville Daily Register. "The board will work closely with [UHS] and will work hard to make sure there is a smooth transition."
The board will meet next week to discuss new management options.
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