Not-for-profit Valley Baptist Health System, Harlingen, Texas, loaned $20 million to for-profit Harlingen (Texas) Medical Center, a joint venture between MedCath Corp. and local physician investors. Harlingen Medical, a 80-bed general acute-care hospital that opened in 2002, will use the money and a new $40 million mortgage loan from a third-party lender to repay a $60 million debt to MedCath, the company's treasurer, Art Parker, said. Harlingen Medical will remain independent from two-hospital Valley Baptist, but Parker and Valley Baptist Chief Executive Officer James Springfield said they expect a closer relationship to develop. "Over time, (the agreement) will help us serve a wider population and work with a well-established and entrenched local hospital," Parker said. Half of the $20 million is due when Harlingen Medical reaches certain financial thresholds and the other half after three years at the option of Valley Baptist. -- by Jessica Zigmond
Texas not-for-profit makes loan to MedCath hospital
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