Ascension Texas, the parent company of Waco-anchored Providence Healthcare Network, has bought several clinics in Central Texas previously operated by bankrupt Little River Healthcare, which folded last month.
The deal will allow the 92-year-old former King’s Daughters Clinic in Temple to resume serving its thousands of clients. It was among the operations Rockdale-based Little River Healthcare closed amid its financial troubles.
A handful of physicians practicing in Waco reportedly helped Little River Healthcare meet its obligations. Central Texas Urology, located in a former Target store that has become a medical plaza, had been affiliated with Little River Healthcare but severed ties early last month. Central Texas Urology’s operations have continued amid the shakeup.
Elsewhere in McLennan County, “we have not converted anything in Waco, yet. We are working with a couple of local physician practices,” Ascension Texas spokeswoman Kathy Hadlock said.
The transaction means at least 25 physicians, nine treatment specialists and 70 staffers previously employed or working with Little River Healthcare now find themselves under the auspices of Ascension Texas, which is part of a nonprofit health system that operates more than 2,600 sites of care, according to background material provided by local Ascension representatives.
Ascension announced its buyout of certain Little River assets last week.
“We are proud of the new partnership with physicians and staff formerly affiliated with Little River, as their continued commitment to residents of Central Texas aligns with the compassionate care we provide to our local communities,” Ascension Texas President and CEO Craig Cordola wrote in a press release. “We believe this will strengthen health care in the region and allow these trusted physicians and medical staff to ensure continuity of care to those they serve.”
Loss of the King’s Daughters Clinic in Temple would have been devastating since it serves thousands of patients, said Dr. Jamie Callas, chief medical officer for Ascension Medical Group Temple-Georgetown.
“This strategy seamlessly connects Ascension Texas patient care from Austin to Waco,” Clayton Carsner Ascension Texas COO wrote in the press release.
Flagship Ascension-related hospitals in the region include Dell Seton Medical Center at the University of Texas, Seton Medical Center Austin, Providence Health Center and Dell Children’s Medical Center, according to the press release.
The buyout does not address the closing of hospitals in Rockdale and Cameron, both of which succumbed to Little River Healthcare’s financial woes, according to an article by the trade publication Modern Healthcare. It also quotes Cordola as saying the purchase price was small and primarily involved the cost of furniture and some equipment.
The story also states Callas served as chief medical officer for Little River Healthcare before assuming his role as chief medical officer for Ascension Medical Group Temple-Georgetown.