University General Health System looks to sell hospital

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Houston-based University General Health System Inc. is looking to sell the Dallas hospital it bought two years ago.

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Olivia Pulsinelli

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Houston-based University General Health System Inc. is looking to sell the Dallas hospital it bought two years ago.

The hospital system has already talked with potential acquirers and/or joint venture partners for the 111-bed University General Hospital Dallas. University General also has begun reducing operating costs at the hospital, though no details about that process were provided in the company's statement.

University General acquired the hospital, then known as South Hampton Community Hospital, in December 2012 from Dufek Massif Hospital Corp. According to the Houston Chronicle, University General paid $30 million for the hospital.

"South Hampton Hospital had experienced incredible challenges over the last two decades under the guidance of over 25 different management teams," Dr. Hassan Chahadeh, University General's chairman and CEO, said in a statement.

The system has since invested nearly $20 million in capital expenditures, providing working capital, creating new programs and recruiting new clinical and professional staff. The hospital also obtained Joint Commission Accreditation in late October.

"The hospital today is dramatically improved relative to the facility we purchased two years ago," Chahadeh said in the statement. "The decision to sell or otherwise dispose of UGH Dallas has been a very difficult one; however, without adequate capital we must act in accordance with what is best for the community and for the company."

NexBank Capital Advisors is the financial adviser and investment banker for the sale.

Olivia Pulsinelli is the web producer for the Houston Business Journal's award-winning website. Follow her on Twitter for more.