HOT SPRINGS VILLAGE -- It's business as usual at CHI St. Vincent Hot Springs' convenient care clinic on Highway 7 north despite the property's sale earlier this month to a Wisconsin-based real estate investment company, the hospital's president said Wednesday.
Anthony Houston, CHI St. Vincent Hot Springs president, said the hospital is continuing to operate the Hot Springs Village location that was sold to Physicians Realty LP for $3.65 million. Houston said the sale-and-leaseback arrangement proceeds from Catholic Health Initiative's plan to evaluate its real estate portfolio. The Colorado-based nonprofit health system operates more than 100 hospitals in 19 states.
"There are no changes to our operations," Houston said. "(The sale) was just part of a national initiative CHI undertook across all markets to look at where we are from a real estate standpoint. We're not a real estate company. We'll stick with health care. Instead of being an owner, we sold the asset and now rent the space."
According to property records, St. Joseph's Mercy Health System purchased the 4419 Highway 7 north property in September 2010 for $4.06 million. CHI St. Vincent acquired Mercy Hospital Hot Springs and physician clinic in 2014.
"We have growth plans for the west gate operation that aren't dependent on whether we own the real estate," Houston said. "Our focus is on ensuring the west gate location has a full offering of primary care, convenient care and specialty care. They'll be more to come as we continue to work on that plan."
Physicians Realty LP is a subsidiary of Physicians Realty Trust, a real estate investment trust specializing in health care properties. Investors purchase shares and receive a portion of the aggregate lease income generated by the REIT.
Houston said the sale of the former HealthPark Hospital at the South Campus in February wasn't part of CHI's real estate evaluation plan. It was sold to HealthSouth Corp. for $5 million as part of a joint venture with the Alabama-based chain to turn the 62,321-square-foot facility into a rehabilitation hospital.
"(The sale) was more about our partnership with HealthSouth," Houston said. "They're experts in rehabilitative medicine, and we've had a long-standing relationship with them in the Little Rock market for 20 years. (The sale) was part of our equity contribution to that relationship. We still remain part owners along with them."
Houston said the 40-bed inpatient facility is scheduled to open in July, allowing the rehab operation inside the main hospital to relocate to a larger area and free up beds for other patients. It will provide rehabilitation services to patients who have experienced stroke, trauma, brain injury and complex orthopedic conditions.
"The building wasn't being used, and we wanted to bring it back to life," Houston said. "We're growing from 27 beds to 40 that can meet the rehab medicine needs of southwest Arkansas. We're very excited about it and making progress quickly."
Local on 05/26/2016