Financial details were not disclosed. Lakeway Regional opened in 2012 after receiving $167 million in loans from the U.S. Department of Housing and Urban Development. The 106-bed hospital, mostly physician-led, has recorded only 25 to 35 inpatients per day and has been struggling financially, which has led to some layoffs, according to an Austin Business Journal report. In April, CMS also fined Lakeway Regional $10,000 related to lab deficiencies.
UGHS is a physician-owned, publicly traded health system. The system includes 69-bed University General Hospital as well as several ambulatory surgery centers, diagnostic imaging centers, hospital outpatient departments and senior living facilities. UGHS also owns the Robert Horry Center for Sports & Physical Rehabilitation in Houston.
Over the past year, UGHS has acquired several new ASCs and centers. In December 2012, it acquired its first new acute-care hospital, South Hampton Community Hospital in Dallas, and renamed the 111-bed hospital as University General Hospital Dallas. Lakeway Regional would become the third hospital within the system, although no timeline was given for a potential transaction.
The for-profit company recently reported more than $113.2 million in total revenue in the year ended Dec. 31, 2012. This was a 59 percent increase year-over-year. Operating income increased almost eightfold to $19 million, but UGHS posted a net loss of $3.4 million due to interest expenses and other investor losses. Hassan Chahadeh, MD, chairman and CEO of UGHS, recently said the system is “well-positioned to execute its strategic growth strategy,” which includes pursuing acquisitions throughout the Houston and Dallas markets. UGHS’ shares have fluctuated over the past year between $0.35 and $0.70.
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