Not-for-profit Texas Health Resources, Arlington, and for-profit LHP Hospital Group, Plano, Texas, announced that they have formed a joint venture that has acquired 215-bed Wilson N. Jones Medical Center, Sherman, Texas. The deal includes a $25 million capital commitment over the next four years, but other financial terms were not disclosed. The hospital has been renamed Texas Health Presbyterian Hospital-WNJ. THR holds a majority stake in the joint venture; LHP will manage the hospital, which is about 63 miles north of Dallas.
THR and the management team of LHP are well-acquainted. Douglas Hawthorne, THR's CEO, has been a director of LHP since its 2008 founding. Most of LHP's management team used to run Triad Hospitals, Plano, Texas, which formed a joint venture with THR to build and operate 208-bed Presbyterian Hospital of Denton (Texas). After Community Health Systems, Franklin, Tenn., bought Triad Hospitals in July 2007, THR eventually bought out Community's stake in the hospital.
LHP's strategy is to pursue joint ventures with not-for-profit hospitals. It owns a majority stake in an Idaho hospital through a joint venture and has three other deals subject to letters of intent.