Tomball Hospital Authority (THA), which owns and operates Tomball Regional Medical Center (TRMC) announced that its board of directors has unanimously approved the sale of substantially all of the assets of TRMC to a subsidiary of Community Health Systems, Inc. TRMC is a nationally recognized provider of comprehensive healthcare services serving the greater Northwest Houston market.

The transaction is subject to customary closing conditions and is expected to be completed later this year.

Pictured is the TRMC tower.

“Following a comprehensive review of strategic alternatives, which included the evaluation of numerous potential partners, I’m pleased to announce the board’s selection of Community Health Systems, an ideal partner to ensure TRMC’s long-term success,” TRMC President and CEO Lynn LeBouef said.  “Our medical staff and employees have worked hard to implement successful performance improvement initiatives to counter the challenges we’ve faced related to the impact of healthcare reform and increased competition from nearby hospitals. After thorough consideration, the sale of TRMC to Community Health Systems is the right step for our organization to build on this progress and to ensure that we are able to meet the community’s healthcare needs for many years to come.”

Community Health Systems and THA have entered into a definitive asset purchase agreement involving the sale of substantially all of TRMC assets. Sale proceeds will enable payment in full of all outstanding financial obligations of THA. As a result of the sale, the hospital will convert to taxable status, thereby contributing to a substantial increase in the tax base available to the City of Tomball and Harris County.

Community Health Systems is located in Nashville, Tenn. According to Community Health Systems, it is one of the largest publicly-traded hospital companies in the U.S. and a leading operator of general acute care hospitals in non-urban and mid-size markets throughout the country. Through its subsidiaries, the company currently owns, leases or operates 133 hospitals in 29 states with approximately 19,500 licensed beds. Its hospitals offer a broad range of inpatient and surgical services, outpatient treatment and nursing care. 

Building on its network of 18 affiliated hospitals throughout Texas, Community Health Systems will position TRMC as its flagship health system for the region serving the Tomball and Northwest Houston markets. To that end, Community Health Systems has committed to make capital investments of at least $50 million over five years to expand clinical programs and to renovate and expand existing facilities and infrastructure. The investment will also allow TRMC to acquire advanced medical technologies and pursue development strategies, such as physician recruitment and practice acquisitions. Additionally, the acquisition agreement includes commitments that will provide substantial support to local community efforts, including TOMAGWA Health Care Ministries and Lone Star College.

“This sale is good news for our medical staff, employees, patients and the broader Tomball community,” LeBouef said.  “Community Health Systems is an industry-leader in managing community hospitals such as ours. There are many benefits to TRMC and the Tomball community from this partnership, including access to capital, additional resources and expertise and the continued provision of quality, cost-effective healthcare.”

Additional covenants in the agreement assure that active employees in good standing at the time the transaction closes will be hired into their same positions, at the same rate of pay and with their seniority recognized. Also medical staff credentialing and privileges will be honored and the hospital will continue to provide and support indigent care in the community and a local Board of Trustees, comprised of community leaders and members of the medical staff, will be established.

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