Bankruptcy judge approves sale of Forest Park’s Frisco hospital to HCA

HCA North Texas’ purchase of Forest Park Medical Center in Frisco, part of a troubled chain of upscale hospitals that started in Dallas, was approved by a federal bankruptcy judge this week.

Judge Brenda Rhoades signed an order Monday allowing Columbia Medical Center of Plano, a subsidiary of HCA, to buy the the 54-bed, state-of-the-art facility. Sabra Health Care REIT, which owned the hospital, announced earlier that it was selling the facility for $96.25 million. The sale is expected to close by March 31.

The acquisition will add to HCA’s growing presence in North Texas. The chain already owns facilities including Plaza Medical Center and Medical Center Alliance in Fort Worth, Medical Center Arlington and North Hills Hospital in North Richland Hills.

The company is still formulating its ultimate plans for the hospital, said Janet St. James, a spokeswoman for HCA.

The Frisco hospital filed for Chapter 11 bankruptcy last fall as the chain, which opened several hospitals over a couple of years, quickly faced problems meeting large debts. The chain got into trouble because of the type of patients it coveted and those it didn’t.

The physician-owned Forest Park’s initial approach was to strictly seek out more upscale patients with private insurance instead of government-sponsored healthcare through Medicare or Medicaid under the Affordable Care Act.

Two Tarrant County hospitals associated with the chain are working their way through bankruptcy. Forest Park Medical Center Fort Worth filed in November and Forest Park Medical Center at Southlake sought Chapter 11 protection in January.

Sabra, which had been acting as debtor in possession of the Frisco hospital, agreed to the sale after growing sour on its $284.4 million investment in the chain. Sabra also invested in the chain’s Dallas hospital, which shut its doors in October, and Forest Park Medical Center Fort Worth.

Sabra officials have said they have “real buyers” interested in purchasing those properties. During an earnings call on Monday, Sabra’s Chairman and CEO Rick Matros said that the company expects “resolution on our loan investments in the Forest Park Fort Worth and Forest Park Dallas hospitals in the second quarter.”

When the Forest Park hospital in Southlake filed for bankruptcy in January, it owed its landlord, GAHC3, $11.7 million in back rent. A judge has allowed GAHC3 to become the debtor in possession and loan the hospital $16.3 million to keep it operating. The loan agreement includes stipulations that the hospital be sold by May.

This story was originally published February 24, 2016 at 4:20 PM with the headline "Bankruptcy judge approves sale of Forest Park’s Frisco hospital to HCA."