It will become the only hospital of its kind between Austin and Dallas.
King’s Daughters board of directors on Tuesday OK’d the proposal by Scott & White to merge with the facility and convert it into a regional children’s hospital.
The board’s vote followed a search for a health care organization to acquire the financially struggling hospital.
The transfer of ownership to Scott & White will be effective today.
Scott & White will continue to operate King’s Daughters as an acute-care hospital serving adults and their families until the conversion to the Children’s Hospital is complete, a process Scott & White representatives say will take many months.
During this time, the transaction will undergo a review by the Federal Trade Commission and other regulatory agencies. This type of review is customary for a transaction of this type, according to a press release from King’s Daughters Hospital.
In the past few weeks, a campaign was mounted to pressure the KDH board to consider an alternative plan - a merger with Seton Family of Hospitals. The Citizens Against Healthcare Monopoly Coalition, primarily funded by King’s Daughters Clinic, was very vocal about its opposition to any merger of KDH with Scott & White.
The freestanding children’s hospital will continue to bear the name King’s Daughters after the transition. It will have 60 to 80 beds and four operating suites to support the delivery of pediatric services including surgery, orthopedics and a dozen more sub-specialties.
There will also be a dedicated pediatric emergency department and intensive care unit.
Scott & White is exploring a partnership in which Cook Children’s Health Care would provide management of both inpatient and outpatient services at the new children’s hospital
“The merger of Scott & White and King’s Daughters Hospital will continue serving this community, with a focus on our children,” said Dr. Alfred B. Knight, president and CEO of Scott & White. “The addition of Cook Children’s to this effort means there will be an unprecedented emphasis on children’s health in our area.”
Children are among the fastest growing segments of the population in Central Texas, said Dr. Robert W. Pryor, chief medical officer and chief operating officer for Scott & White and a pediatric critical care specialist.
“The new free-standing Children’s Hospital will provide enhanced coordination of care for pediatric patients in a child-friendly environment,” Pryor said.
The decision by the King’s Daughters board reflects its excitement for Scott & White’s vision for the hospital as well as Scott & White’s responsiveness in helping King’s Daughters quickly find a solution for the troubled facility, board chairman John Cunningham said.
“King’s Daughters has served this community well for more than 100 years, and we are proud to have found this opportunity that will allow our hospital to continue its service for decades to come,” Cunningham said. “The board greatly appreciates the dedicated work of our nurses and staff members over the last year.”
Although Scott & White will formally assume operations of King’s Daughters today, the day-to-day services at the facility will remain unchanged for now as Scott & White representatives work to learn more about the hospital’s operations. Gary Looper will remain as interim CEO and provide guidance over the next year as a conversion plan is developed.
Over time, Scott & White’s Children’s Hospital, now housed at Scott & White Memorial Hospital, will relocate to the King’s Daughters facility. The timetable for that transition is still to be determined, according to the press release.
The concept for a freestanding children’s hospital was advanced after King’s Daughters Hospital entered into a nondisclosure agreement with Scott & White on Feb. 16 to explore a potential partnership. That step was taken in response to a combination of economic factors confronting King’s Daughters Hospital.
