About St. Joseph Medical Center
A Legacy of Service to Houston
“HOUSTON’S FIRST”- A NEW ERA IN THE LIFE OF A HOUSTON LANDMARK
Hospital Partners of America, a Charlotte, North Carolina-based, privately-held healthcare services company founded in 2002 to own and operate general acute care hospitals in partnership with leading physicians throughout the United States, has successfully closed on the purchase of Houston’s first and oldest, continuously operating hospital, CHRISTUS St. Joseph Hospital, located in the Central Business District of downtown Houston, Texas. The 1.2 million square foot facility will now be known as St. Joseph Medical Center.
The transaction, which becomes official at 12:01 a.m. on Sunday, August 20, 2006, gives Hospital Partners of America two major facilities in Houston. The company acquired Twelve Oaks Medical Center, on January 1, 2004, together with a team of Houston’s premier physicians. Twelve Oaks Medical Center is situated on two campuses located in the Greenway Plaza/River Oaks area, and Sharpstown.
St. Joseph Medical Center, originally founded in 1887, by the Sisters of Charity of the Incarnate Word, a Catholic Order dedicated to providing “Christ-centered, compassionate health care”, was once known as “Houston’s Birthplace” because at one time, one of three Houstonians was born there. Today, approximately 5,000 babies are delivered at St. Joseph Medical Center annually. What began as Houston’s first teaching, maternity and emergency care hospital has evolved into one of Houston’s premier general acute care medical centers, and the only full-service medical facility located downtown.
CHRISTUS Health Group, headquartered in Dallas, announced last year that it was seeking to sell certain assets of CHRISTUS St. Joseph Hospital. Following negotiations, Hospital Partners of America entered into a Letter of Intent with CHRISTUS on March 20, 2006, with an Asset Purchase Agreement effective on June 22, 2006. “Today’s closing represents the conclusion of the sale of this historic institution, and the beginning of an exciting new area of service for St. Joseph Medical Center,” quoted Phillip D. Robinson, Vice President of Texas Operations for Hospital Partners of America and leader of the HPA transition team.
“St. Joseph Medical Center is strategically positioned to capitalize on Houston’s projected increase in population growth and dynamic changes constantly occurring in the Central Business District area,” says Robinson, who recently served as CEO of Bayshore Medical Center, after tenure of ten years with other Hospital Corporation of America (HCA) institutions. “More importantly, the sale represents a unique opportunity for the highly skilled physicians at St. Joseph Medical Center that is headed by Chief of Staff, John Bertini, M.D., to share in the ownership as other physician/partners do with our other assets. This brings a level of healthcare delivery not otherwise possible under the former ownership model. The traditional HPA ownership structure is a partnership between HPA management and physician/owner-led LLC’s,” quotes Robinson. “When physicians are a vital part of the overall decision making process, there is a marked improvement in the quality of care a patient receives. HPA is a pioneer in this shared management approach in today’s rapidly changing healthcare marketplace.” says Robinson.
Robinson, who has already been in contact with Houston Mayor Bill White, comments on the City’s concern for providing a tradition of care: “We expect to continue to deliver the same types of services as our predecessor, but more importantly, HPA will invest in growth and improvements in all other aspects of healthcare delivery at the new St. Joseph Medical Center.”
The purchase of CHRISTUS St. Joseph Hospital is the largest transaction to date for the rapidly expanding Hospital Partners of America group. Todd Johnson, President and CEO of Hospital Partners of America in North Carolina, reports “The company was founded on the principal of delivering patient-focused healthcare in hospital settings. We acquire existing acute care hospitals, in partnership with local physicians with a focus on under performing facilities that meet HPA’s market selection criteria. We believe when hospitals become more focused, and their patients more value conscious, they will begin to resemble companies in other competitive service industries. We believe this to be a good thing for all parties concerned.” quotes Johnson. Other HPA assets include Twelve Oaks Medical Center, Houston; Austin Surgical Center, Austin, Texas; Shasta Regional Medical Center, Redding California. Details on Hospital Partners of America are available on their web site, “www.hospitalpartners.com”.
“Recognizing the potential for hospital industry growth, Hospital Partners of America is backed by several private equity partners, including New Enterprise Associates, Tailwind Capital Partners and QuestMark Partners, L.P. They focus on emerging growth companies with exceptional management teams,” says Johnson.
Houston is the fourth most populous city in the nation, trailing only New York, Los Angeles and Chicago. As a major corporate center, Houston is home to 24 Fortune 500 listed companies, according to recent data published by the Greater Houston Partnership.
“St. Joseph Medical Center is the first and only hospital serving the needs of downtown Houston. We intend to build on the 119-year heritage of this facility by continuing to provide quality healthcare services to this rapidly growing market. As Houston’s first name in healthcare, we are proud of the hospital’s history and even more excited about its future,” says Robinson.
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