Texas Health Resources recently won a bidding war with Methodist Health System by pledging $116.5 million to acquire Forest Park Medical Center Fort Worth. The Arlington-based Texas Health organization plans to revive the financially troubled doctor-owned upscale hospital out of bankruptcy.
Deirdre Ruckman, the attorney representing Sabra Health Care REIT, which owns the 150,000-square-foot Texas Health and the adjoining office building and parking garage, said Texas Health’s bid was $1 million more than Methodist Health System’ final offer.
“We’re making progress here. I think it will be good for the Fort Worth community,” said Ruckman.
FPMC Fort Worth Realty listed estimated assets of $100 million to $500 and liabilities between $50 million to $100 million. The value of the property was eventually set at $122 million through an appraisal. The hospital will become Texas Health facility when the deal closes by the end of the month.
A deal had been reached last month by Methodist Health, which owns more than 10 facilities in North Texas, to buy the Forest Park Center in Southlake.
FPMC Fort Worth, which lies on 7 acres of the Edwards Ranch property, is a 54-bed acute care facility. Developed by the Neal Richards Group of Dallas, it was part of a chain of luxury hospitals aimed at offering patients more individualized care and attractive surroundings. However, its business model failed. Its other locations in Southside, San Antonio and Frisco, all have either closed, filed for bankruptcy or have been sold.
The acquisition will solidify Texas Health’s position as the largest health system in North Texas. In North Texas, 24 hospitals are owned by Texas Health Resources, which includes Texas Health Harris Methodist Hospital Fort Worth. This latest deal will add 27 acute-care and short-stay hospitals to the hospital network, serving more than 7 million residents in 16 counties in and around Dallas-Fort Worth area.
The Frisco location was bought by HCA North Texas for $96.25 million early this year. St. David’s HealthCare, which is part of HCA, will buy Forest Park’s yet-to-open Austin hospital for $115 million. Forest Park still has its now closed hospital in Dallas for sale, and Methodist Health is expected to be among several bidders for that location. A San Antonio hospital was also owned by the company, but it closed because of cash-flow and debt problems.