Dallas-based Baylor Scott & White teamed with United Surgical Partners International to purchase majority ownership in Tyler-based Texas Spine & Joint Hospital, according to the Tyler Morning Telegraph.
Here are five things to know:
1. Texas Spine & Joint Hospital will remain partially physician-owned, with Baylor purchasing controlling stake. USPI will also have ownership in the hospital.
2. Texas Spine & Joint Hospital plans to expand service areas after bringing on the new ownership. The hospital will also rebrand, but did not release its new name.
3. USPI will serve the partnership in a management capacity. Formed in 2002, Texas Spine & Joint Hospital is a 20-bed facility that includes orthopedic, spine surgery and pain management.
4. The hospital is valued at $18 million and planned a $37 million expansion, but the ACA's moratorium on new physician-owned hospitals and halt on existing POH expansion blocked the hospital's plans. The hospital sued the federal government to challenge the constitutionality of the ACA's ban on physician-owned hospitals.
5. Post-acquisition, the federal government will still consider Texas Spine & Joint a physician-owned hospital and will prohibit the facility from expanding inpatient beds. However, the hospital will be able to expand into outpatient surgery centers and clinics.