Seton Family of Hospitals announced it’s not interested in taking over a troubled central Texas hospital from Scott & White Healthcare. Scott & White said the April acquisition was questioned by the Federal Trade Commission (Print subscription required), and at the government’s request, the system offered the hospital to Seton, a division of Ascension Health, in late October.
Seton rejects plan to acquire King's Daughters
The rejection means Scott & White is free to go ahead with its original intent to convert 120-bed King’s Daughters Hospital in Temple into a children’s hospital, said Chief Strategy Officer Peter Brumleve. Scott & White has four other hospitals.
The FTC has taken no formal action on the matter, and a spokesman declined to confirm that its staff struck an agreement with Scott & White or made any conclusions about the transaction.
According to Brumleve, the FTC preferred that Scott & White not become the sole acute-care provider in Temple aside from Olin E. Teague Veterans’ Center. He said the agreement called explicitly for the King’s Daughters assets and liabilities to be offered to Austin-based Seton, which had been in talks with the board of the previously independent hospital before the deal emerged with Scott & White. “They did not say we had to find a buyer at all costs,” Brumleve said. “We’re excited about getting back on track.”
The rejected offer invited Seton to step into the shoes of Scott & White as if the clock could be wound back the day the system acquired King’s Daughters Hospital. Seton, however, concluded that the theoretical do-over was “inconsistent” because the financial and operational condition of the hospital had become “significantly worse,” according to its letter declining the deal.
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