Healthcare Business News

Texas concierge provider continues buying spree with hospital purchase

By Melanie Evans
Posted: December 18, 2012 - 11:45 am ET

A Houston-based concierge healthcare company has expanded into Dallas with a $30 million deal for an acute-care hospital.

The deal by University General Health System, Houston, for South Hampton Community Hospital, Dallas, is the latest in a string of acquisitions by the investor-owned company during the last 18 months. Its purchases have included senior living centers; a billing and collection company; diagnostic imaging, physical therapy and sleep clinics; and an ambulatory surgical center.

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More deals will likely follow the company's acquisition of the 91-bed Dallas hospital, the company's president said in a news release. "We have identified a number of other metropolitan markets as target opportunities for our regional healthcare delivery model," said Donald Sapaugh, president of University General. "Initial evaluations of potential acquisitions in several of these markets, in addition to further opportunities in Houston and Dallas, are currently under way."

The company's strategy, according to its financial records, seeks to acquire acute-care hospitals and develop "regional health networks" nearby.

"Such regional health networks and ancillary services will reflect a vertically integrated, diversified system …," the company’s 2011 financial report said.

The system largely used debt to finance the Dallas hospital deal, which also includes a medical office building.

The newly acquired hospital will generate $40 million in revenue and $15 million to adjusted earnings before interest, taxes, depreciation and amortization for 2013, according to the company.

For the nine months that ended in September, the company reported net income of $7.8 million on revenue of $84.1 million, compared with net income of $378,000 on revenue of $54 million for the same period the prior year.

Officials for University General Health System did not respond by deadline to requests for additional information.

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