The financially troubled Menninger Clinic, Topeka, Kan., is heading to Houston after all. More than a year after it abruptly pulled out of a partnership with the Baylor College of Medicine and Methodist Health Care System, Houston, the world-famous psychiatric clinic announced it has struck a new deal with the facilities. The relocation from Topeka, where the clinic was founded in 1925, is expected to be completed by June 2003. Financial terms of the partnership were not disclosed. Clinic officials said they reconsidered the deal after they were given more autonomy over operations in Houston and greater control of executive decisions at board level. What's more, the top management team will remain intact and relocate to Houston, officials said. All employees will be offered jobs in Texas. "This partnership has a familiar ring to it," said W. Walter Menninger, M.D., who retired last year as president and CEO of the Menninger Foundation. "The timing now is really excellent."
Menninger announced its first partnership with Baylor and Methodist in September 2000, but 10 months later, the deal fell apart. Although officials would not comment on the reasons for the collapse, reports indicated that the two Texas institutions were unable at that time to raise the estimated $200 million in endowment funds promised to Menninger as part of the collaboration. -- by Michael Romano