Houston Healthcare is proposing a new "strategic partnership" with Navicent Health.
The two corporations held a public hearing Monday to explain what the partnership would mean and how it could affect your healthcare.
At the hearing on Monday afternoon, leaders from both Houston Healthcare and Navicent made it a point to note that this is a proposed partnership and NOT a merger.
"The delivery of healthcare remains a challenging effort and the finances delivering this healthcare as an independent hospital have changed dramatically,” said Houston Healthcare chairman Roy Watson.
Lawyers, board members and representatives from Houston Healthcare gathered to discuss the terms of a "proposed transaction.”
"Like many standalone community health systems, our financial system is not as good as it once was. We've arrived at a point where we must join with a partner in order to retain to viability and longevity of our hospital,” said Watson.
Watson says the board began discussing potential partners about a year and a half ago and Navicent Health met over a dozen of their "guiding principles."
"It's not a sale and it's not a merger, so there's no associated purchase price. However, Navicent has agreed to make a capital commitment of $125 million along with Houston's commitment of $25 million for a total capital commitment of $150 million into the Houston service area over a 10-year period,” said Houston Healthcare COO Charles Briscoe.
According to Navicent leaders, $60 million of that $150 million will be spent on "routine replacement" of medical equipment, and $90 million will be spent "strategically" on things like physician recruitment and expansion of facilities.
"At the end of the day, the community will be better because of the services provided. Our values are very well aligned and our mission strategies are exactly the same,” said Navicent CEO, Ninfa Saunders.
If the state attorney general signs off on the proposal, Briscoe says Houston Healthcare patients will still receive the same type of care, facilities will still be managed locally and will "not be swallowed" by Navicent, and there are no planned layoffs.
The public hearing record is open until December 6, then the Attorney General has 30 days to make a decision.