USMD add ownership in USMD Hospital at Arlington

September 16
9:29 PM 2013

USMD Holdings Inc. is a physician-led integrated healthcare system headquartered in Irving, Texas. Today, it announced that its wholly owned subsidiary, USMD Hospital Division, had purchased 17.96% ownership interest in USMD Hospital at Arlington. The acquisition was from a group of individual physicians and physician-owned entities that increased USMD's ownership in USMD Hospital at Arlington by 45.4%. Texas Health Resources would retain its 51% ownership in the hospital.

The deal was deemed significant as it eliminated any direct ownership of USMD Hospital at Arlington by referring physicians. Last March 2010, the Affordable Care Act was signed which amended the federal physician self-referral law. It had also limit probable expansion of physician-owned hospitals. However, with the transition in ownership, the said act would no longer apply to USMD rooms, inpatient beds and services and procedure rooms.

According to John House, M.D., chairman and chief executive officer of USMD Holdings said, "The transition of ownership at USMD Hospital at Arlington has been in development for years and we're excited to finalize this transaction and increase USMD's ownership in the hospital. This gives the hospital the opportunity to increase its service offerings even further to better meet the needs of the Arlington community."

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