After closing, a Texas hospital is poised to get new ownership

Months after CHRISTUS Health closed the CHRISTUS Santa Rosa Hospital – Medical Center in San Antonio, the facility is poised to gain a new owner.

University Health has agreed to buy the former CHRISTUS Santa Rosa Hospital – Medical Center in San Antonio. University Health and CHRISTUS Health announced the planned transaction this week.

University Health has reached a deal to buy the medical center from CHRISTUS Health. The organizations announced the deal this week. CHRISTUS Health, the nonprofit Catholic system, closed the 174-bed medical center in April, saying it was consolidating services at other nearby facilities.

In the deal, University Health plans to acquire the medical center, a four-story, 236,000-square-foot hospital, and two medical buildings. Officials say they are aiming to complete the deal by late September or early October.

University Health says it will announce plans for the campus, including the types of services that will be offered, in the coming months.

University Health is buying the hospital in a $71 million deal, and plans to invest an additional $20 million in the site, according to the San Antonio Business Journal. The hospital was built in 1986.

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Edward Banos, president and CEO of University Health, said the purchase of the medical center makes sense for University Health, especially as its flagship University Hospital is treating more patients.

"The location and size of the CHRISTUS Medical Center property, and the timing of this opportunity could not be better as we are experiencing unprecedented growth in patient volumes,” Banos said in a statement on the deal.

“Acquiring this 45-acre hospital campus will help decompress University Hospital, and provide convenient parking and easy access for our patients in need of advanced specialty care and diagnostic services,” he said. “Expanding our footprint in the Medical Center also strengthens our ability to recruit and retain top medical experts to care for our community.”

The move comes as University Health has embarked on a $1.5 billion expansion in Bexar County, which includes San Antonio.

University Health is in the midst of building two 5-story hospitals, which are slated to open in early 2027. The system is also planning to open two public health and multi-specialty centers this fall.

University Health is a locally-owned organization and is formally the Bexar County Hospital District. The Bexar County Hospital District Board of Managers voted in favor of the deal this week. The district says it has enough money to complete the deal without the need for any tax increase.

Ernie Sadau, president and CEO of CHRISTUS Health, said he is glad to strike a deal with a partner “that shares our vision for the community and the region.”

“This transition ensures that the facility continues to meet the needs of area residents with the same spirit of compassion and excellence that CHRISTUS is known for,” Sadau said in a statement.

Bexar County Judge Peter Sakai said University Health’s purchase of the medical center is “wonderful news for our community.”

“The acquisition of this campus is a game-changing opportunity for our hospital district to expand access to care, strategically, with the best interests of patients at the forefront,” Sakai said in a statement.

In announcing the closure of the hospital, CHRISTUS Health pointed out that CHRISTUS Santa Rosa Hospital – Westover Hills is 13 miles away. That campus recently opened a new tower to replace all the inpatient beds at the medical center, the system said.

Last fall, CHRISTUS Health agreed to take over operations of Wadley Regional Medical Center in Texarkana, a facility formerly owned by Steward Health Care. CHRISTUS Health also opened a new hospital in southeast Texas earlier this year.