Lovelace Health System Inc. announced Monday morning that it has signed a deal to purchase the assets and operations of the Heart Hospital of New Mexico from MedCath Corporation for $119 million.
The 55-bed Heart Hospital in downtown Albuquerque will join the Lovelace Health System and become a part of the nearby Lovelace Medical Center.
One reason for the sale was the fact that the new health care reform law restricted the expansion of physician-owned specialty hospitals, such as the Heart Hospital, Lovelace said in a news release.
“We’re excited to welcome the Heart Hospital to the Lovelace family,” Ron Stern, president and CEO of the Lovelace Health System, said in a statement.
“With heart disease as the leading cause of death in New Mexico, this partnership will bring a full range of cardiology services to more people in Albuquerque and across New Mexico. They’ll now have easier access to the Heart Hospital’s quality physicians and care.”
Lovelace said the acquisition means that there will be improved access to the Heart Hospital for thousands of members of the Lovelace Health Plan and other plans.
Lovelace also said current medical staff and nurses at the Heart Hospital are expected to stay on and provide exceptional clinical quality care.
For the Heart Hospital, the arrangement will mean increased efficiencies, increased access to capital and additional growth opportunities.