Christus Health, Irving, Texas, signed a nonbinding agreement to buy McKenna Memorial Hospital, New Braunfels, Texas. Tim Brierty, McKennas president and chief executive officer, said the 132-bed hospital, though profitable, needed the resources of a system to meet demand and remain competitive in a growing market. McKenna reported income of $2.1 million off revenue of $87.5 million in 2005, according to the most recent publicly available figures.
McKenna whittled down the list of potential suitors in May from seven to three; Christus, with 17 general acute-care hospitals, won out because of its similar mission, Brierty said. Officials expect to close the sale within 90 days, he said. Peter Maddox, Christus senior vice president, said the acquisition will expand the Catholic systems San Antonio market into a fast-growing community and bolster not-for-profit healthcare in the region. -- by Melanie Evans