In an unusual partnership for the Dallas/Fort Worth area, Presbyterian Healthcare System and OrNda HealthCorp will join forces to revive a nearby small-town hospital.
Physicians Regional Hospital in Wylie, Texas, closed two months ago after its former operators went bankrupt. Located in a community of 11,000 residents, the hospital is about 20 miles from Dallas.
"When it became obvious that things were not looking positive, OrNda and Presbyterian began discussions," said Michael Bernstein, Presbyterian's vice president of network development.
Nashville, Tenn.-based OrNda, an investor-owned chain of 48 hospitals in 14 states, operates Lake Pointe Medical Center, a suburban hospital in Rowlett, Texas.
Presbyterian and Lake Pointe had a working relationship and previously opened a primary-care clinic together in Rowlett, Bernstein noted.
Although it's unusual in the Dallas area for a for-profit and not-for-profit to operate a hospital together, such deals are becoming more common in other parts of the country (See story, p. 146).
OrNda had a financial interest in 34-bed Physicians because it was the owner of the building and land although it has leased the facility to other operators.
Under the arrangement, Presbyterian and OrNda will form a 50-50 partnership to operate the hospital. Each will put up $500,000 in working capital, and OrNda will be responsible for maintaining and renovating the existing 11-year-old building.
Bernstein said the partnership plans to spend about $6 million to upgrade and expand the emergency department and operating suites. He said inpatient rehabilitation and skilled-nursing services also may be added.
The hospital is expected to reopen in early 1997.