American Health Properties plans to add long-term acute-care hospitals to its investments.
AHP's "core group" will invest up to $20 million under an agreement with Spectrum Comprehensive Care, a private healthcare services company based in Dallas.
The Englewood, Colo.-based real estate investment trust said its core group, which consists of more than $600 million of investments in acute-care and rehabilitation hospitals, long-term-care facilities and a medical office building, already has begun funding a $6.2 million acquisition and renovation of a long-term acute-care hospital in Amarillo, Texas. The company hopes to identify similar projects over the next year.
Spectrum Comprehensive Care's strategy is to provide long-term acute-care services in lower-cost settings, including freestanding long-term acute-care facilities and leased space within acute-care hospitals, AHP said. Pittsburgh-based Hillman Co., a private investment firm, is a lead investor in Spectrum, the REIT said.
As part of its planned expansion into merchant banking, AHP's core group also is considering a $1.5 million equity investment in Spectrum Comprehensive Care, which would give AHP less than a 10% interest in the company (April 22, p. 26).
Joseph P. Sullivan, AHP's president, chief executive officer and newly elected chairman, said the investment program with Spectrum Comprehensive Care represents the core group's strategy to expand and diversify its portfolio.