GAINESVILLE — Universal Health Services and Texoma Medical Center will terminate its management agreement with Gainesville’s North Texas Medical Center effective on May 1 of this year, officials with NTMC said Monday. The announcement followed notice to the Gainesville Hospital District board of directors that was delivered Monday during a closed, executive session, officials said.
Following the executive session, the board released a statement, but has made no additional comment on the end of the contract.
“We have been informed by Universal Health Services that they have made a corporate decision to not go forward with a lease of the hospital and they will be terminating the management agreement effective May 1, 2018,” the statement says. “Universal has pledged its continued desire to work closely with NTMC and they have pledged a smooth transition.”
It was in late 2016 that members of the board agreed to negotiate an agreement with UHS and its subsidiary Texoma Medical Center for management services, the Gainesville Register reported. In January 2017, NTMC filed a petition for protections under Chapter 9 of Title 11 of the United States Bankruptcy Code with the U. S. Bankruptcy Court for the Sherman Division of the Eastern District of Texas, the paper said.
NTMC Marketing Director Kristi Rigsby said the contract went into effect exactly one year ago Tuesday. Rigsby said she was uncertain of the exact circumstances and terms of the contract, but said the hospital was not in the best financial shape at the time and was looking to partner with an organization that would help bring best practices into the 60-bed hospital.
Despite the end of the management contract, the board said in the statement that the relationship between the hospitals will continue, but gave no details regarding the shape or scope of this relationship.
In a prepared media statement, UHS confirmed that it and TMC had informed the hospital board of directors of the decision to terminate the agreement. When asked directly for comment, Officials with Texoma Medical Center gave no comment on the ending of the management contract or its relationship with NTMC.
“UHS and TMC are actively supporting exploration of future options for the hospital and are committed to working closely with the board in supporting a smooth transition,” UHS said in statement.
Following the announcement, members of the board said there would be no actions taken on the topic, and none were taken during the closed session. Rigsby said the board will be looking into its options and determining the best course of action in the coming days ahead of a special called meeting on Jan. 31.