The FHP Hospital in South Salt Lake will be sold to Paracelsus Healthcare, a hospital chain based in Pasadena, Calif., according to a "definitive agreement" signed this week.
Meanwhile, Paracelsus is merging with Champion Healthcare Corp. of Houston, pending federal approval. The merger was announced Monday, while the purchase of FHP Hospital was announced Tuesday.Assuming the union is accomplished, "the merged company would have four Salt Lake Valley hospitals and one in Davis County, which would make for a stronger competitor with the IHC (Intermountain Health Care) hospital system," said Dee S. Brewer, public affairs director for IHC in Utah.
In September 1995, Champion announced it was acquiring Jordan Valley Hospital in West Jordan while Paracelsus was to buy Pioneer Valley Hospital in West Valley City as well as Davis Hospital and Medical Center, Layton. About a year ago, Champion received FTC approval to buy the former Holy Cross Hospital in Salt Lake City (now called Salt Lake Regional Medical Center).
The new entity will have all of these plus the FHP Hospital in South Salt Lake, according to the plans.
The FHP Hospital, constructed within the past few years, includes a 122-bed acute care hospital, which can be expanded to 250 beds; an adjacent medical center, and related buildings.
FHP insures 184,000 Utahns. Under the new setup, Talbert Medical Management Corp., which man-ages physicians' practices, will lease space in the outpatient medical facility and continue to serve FHP members.
Larry Bridge, president of FHP of Utah, said the agreement calls for FHP to expand its delivery system. It also "creates greater choice for members while continuing our tradition of high-quality care," he added.
"FHP members will still be able to use the same hospital and medical center, but they also have the opportunity to use other Paracelsus hospitals in Salt Lake and Davis counties."
In another written statement, R.J. Messenger, chief executive officer of Paracelsus, added that the residents of Salt Lake City and surrounding counties will have greater access to high-quality medical and hospital care.
When the Champion/Paracelsus merger is completed, the new organization will own and operate 31 hospitals and four skilled nursing centers in 11 states. States where its holdings are largest are Utah, Texas, Tennessee and California.