Legacy Hospital Partners to build New Mexico hospital
Dallas Business Journal - by Thomas Munro New Mexico Business Weekly
The University of New Mexico Medical Group Inc. has signed a letter of intent to negotiate exclusively with Legacy Hospital Partners Inc. to build a new acute care teaching hospital in Sandoval County.
Officials at Plano-based Legacy said the new facility will be located on 60 acres of the new university campus in Rio Rancho's City Centre, if infrastructure issues are resolved. The hospital is set to be completed by the end of 2010.
Construction, which will run between $100 million and $150 million, will be financed by Legacy, a private for-profit company established by former executives of Dallas-based Triad Hospitals Inc. in January to own, operate and manage acute care hospitals in small cities and select urban markets. It is owned by affiliates of private equity firm CCMP Capital Advisors LLC and the Canada Pension Plan Investment Board as well as members of management.
The Rio Rancho hospital will be Legacy's first, though the company's executives worked on 10 similar public/private partnerships before Triad was sold to Community Health Systems in March 2007.
Ownership of the for-profit hospital will be split evenly between Legacy and the Medical Group, which is a private nonprofit. The board of directors of the hospital will also be split evenly. Short-term decision making will be done by a local board, consisting of community members and hospital physicians.
Day-to-day management will be handled by Legacy.
Legacy CEO Dan Moen said the hospital shell will be large enough for 125 beds. The hospital will be staffed by 33 physicians and will be open to community doctors. According to Legacy, total staffing will begin at 438 and could rise to 800.
Moen pegged annual revenues at buildout at $100 million to $120 million.
The hospital will have a teaching function and will work with the local community to encourage the development of local human resources.
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