Bay Medical Center, Panama City, Fla., intends to negotiate a 40-year lease with a new joint venture (PDF) being formed by neighboring Sacred Heart Health System, Pensacola, Fla., and LHP Hospital Group, Plano, Texas, according to a news release.
Fla. hospital seeks lease deal with Sacred Heart-LHP joint venture
Bay Medical Center is owned by Bay County, but receives no tax revenue, according to the release. In order to continue to invest the capital needed to maintain quality in the face of more charity care and lower governmental reimbursements, the hospital needs to become part of a larger system, according to the release. Joining with Sacred Heart's three hospitals in Northwest Florida would enable Bay Medical to further develop clinical services and take advantage of economies of scale.
Sacred Heart is part of Ascension Health, St. Louis, the nation's largest Roman Catholic system. Investor-owned LHP, formed in 2008 by former managers of Triad Hospitals, also has a deal with another Ascension system, Seton Family of Hospitals, to build a hospital in Harker Heights, Texas.
Last week, Waterbury (Conn.) Hospital announced that it planned to become part of a pending joint venture between LHP and St. Mary's Hospital, the other acute-care hospital in Waterbury. LHP and St. Mary's announced their joint venture in March.
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