Transitional Hospitals Corp. is renovating Fifth Avenue Hospital, a Seattle acute-care hospital it intends to buy and operate as a long-term critical-care hospital.
The cost of the planned acquisition wasn't disclosed.
Brim Hospitals, a Portland, Ore.-based hospital management company that has owned the hospital since 1990, will continue to operate a podiatry service at the facility. Approximately 75% of the hospital's surgeries are podiatric, said John Miller, president of Brim. Brim owns five hospitals and manages another 62.
"We're not leaving," Mr. Miller said. "We're going to stay involved with what we purchased the hospital for." The facility's podiatry residency program has attracted a strong business for foot and ankle surgery, 75% of which is done on an outpatient basis, he added.
Brim has signed a management agreement with Transitional, a long-term critical-care hospital subsidiary of Laguna Hills, Calif.-based Community Psychiatric Centers. Transitional, which now operates seven freestanding hospitals and four units in CPC hospitals, will convert 76 of the hospital's 80 beds to long-term-care services. Fifth Avenue must obtain a certificate of need from the state to transfer ownership to Transitional.
CPC also said last week that it had completed a $50 million bridge loan with Bank of America to finance Transitional's expansion plans. Transitional is opening additional hospitals in Minneapolis; Brea, Calif.; Houston; and Fort Worth, Texas.