A Brief History of and Background on the Metrocrest Hospital Authority

The Metrocrest Hospital Authority (MHA) was created in December, 1975 by the City of Farmers Branch under Chapter 262 of the Texas Health and Safety Code, The Texas Municipal Hospital Authority Act. The Authority is an instrumentality of the State of Texas, a political subdivision and a unit of local government. It has the power of eminent domain and enjoys sovereign immunity. The primary mission of the Authority is to create a quality healthcare environment for both providers and users and to ensure that the Authority remains in a position to meet the health care needs in its service area.

MHA Staff
The Authority employs eight personnel in the positions of Chief Executive Officer, Chief Financial Officer, Executive Assistant, Property Manager, two Property Administrators and two Maintenance Engineers.

Through the collective assistance of a competent, 10 member, non-compensated Board of Directors, an effective hospital administration team, and high quality professional staff, the Authority strives to achieve its goal of ensuring the establishment and maintenance of the highest quality health care for its communities.

The original name of the Authority was the Farmers Branch Hospital Authority. The Metrocrest name was chosen in the late 1980s to better represent all of the communities the Authority serves, including North Dallas, Farmers Branch, Carrollton, Coppell, Addison and The Colony.

Its two anchor facilities are general, acute care community hospitals, Dallas Medical Center at Webb Chapel and LBJ in Farmers Branch, and Baylor Medical Center at Carrollton at Hebron and Josey.

Major capital improvement programs were initiated in 1982, 1989 and 2003, funded by taxable municipal revenue bond issues. In the first campaign a new patient tower was erected at RHD Memorial Medical Center, now Dallas Medical Center and Trinity Medical Center, now Baylor Medical Center at Carrollton was built. In the 1989 expansion a new emergency room, labor delivery post partum complex, new operating rooms and many other renovations were made at Trinity, along with a third physician office building. A fourth physician office tower and a parking garage were constructed at RHD Memorial Medical Center, and a new emergency room and major renovations were made. In 1998 a new outpatient pavilion was built at RHD Memorial Medical Center. This project utilized the remaining bond funds and was augmented by capital reserves from the Authority. In the 2003 program a new patient tower, an imaging center and a women's center were built at Trinity Medical Center. Major existing hospital renovations were made there as well.

The hospitals were self-operated from 1975 until 1982 by the Authority. In August 1982, National Medical Enterprises, now Tenet Healthsystems took on daily operating responsibilities under a 25 year contract. This agreement expired in 2007.

In August 2006, The Authority announced that Hospital Partners of America (HPA) would operate the hospitals at the expiration of the Tenet lease. HPA´s plan was to complete a physician syndication at both facilities with HPA being the majority owner and the new entity would operate both facilities. HPA completed the syndication at Trinity Medical Center with physician participation of 29% and the remaining 71% HPA. The new entity was known as Trinity MC,LLC. The lease was signed March 9, 2008. HPA was not successful with a syndication at RHD and continued to operate the facility.

HPA filed for Chapter 11 bankruptcy September 24, 2008 and it was converted to a chapter 7 November 20, 2008.

Baylor Healthcare System purchased HPA's shares of the Trinity MC,LLC from the bankruptcy court and began operating the hospital June, 2009.

RHD Memorial Medical Center was leased to Dallas Medical Center, LLC March 1, 2010 and the name was changed to Dallas Medical Center.

Revenue Under Lease
MHA owns two hospitals which are leased to hospital operators. Its facility in Carrollton is leased to TMC,LLC, of which the majority partner is Baylor Healthcare System. It is operated under the name Baylor Medical Center at Carrollton. The lease term is 25 years with (3) renewal options of 5 years each. MHA's facility in Farmers Branch is leased to Dallas Medical Center, LLC and operates under the name Dallas Medical Center. The lease term is 10 years with (6) renewal options of 5 years each.