Texas Health Acquires MedicalEdge, PhyServe

Texas Health Resources has announced the acquisition of privately held MedicalEdge Healthcare Group, one of the largest independent physician practices in North Texas.

Arlington-based Texas Health also acquired PhyServe, the management services organization for the MedicalEdge physicians, which Texas Health will sell to MedSynergies Inc., the hospital-physician alignment consultants.

Financial terms of both deals were not disclosed.

“This enables Texas Health to become a ‘medical home’ for thousands of North Texas patients,” said Douglas D. Hawthorne, CEO of Texas Health Resources. “Immediately, more than 420 physicians, physician assistants and nurse practitioners will become part of our established and well-respected Texas Health Physicians Group, and the patients of MedicalEdge providers will have easy access to a hospital system dedicated to both quality and accountable medical treatment.”

MedicalEdge, based in Irving, has patient-access facilities in more than 250 locations in Collin, Dallas, Denton, Grayson, Johnson, Parker and Tarrant counties. MedicalEdge employs more than 280 physicians and more than 140 physician extenders and other mid-level health professionals, many of them involved in providing primary care.

“This is the right time for this to happen,” said Clay Heighten, MD, former president of MedicalEdge Healthcare Group. “Most people have probably never heard of MedicalEdge, but we have quietly built a medical group of more than 420 providers and other medical professionals. Now those doctors and their patients will benefit from the capabilities we now have as part of a comprehensive health system.”

Hawthorne said the deal with Texas Health also remains “a committed partner” with several hundred independent physicians on medical staffs in Texas Health hospitals.

“We have built Texas Health to be a ‘house with many rooms’ to align with all types of physicians,” he said. “Our ultimate goal is to improve quality and outcomes through better coordination of care from prevention and wellness programs, to acute care, to long term and hospice care. This is the most significant step Texas Health has taken in our strategy to become an integrated provider and coordinator of care and transform the delivery of healthcare in North Texas.”

Texas Health MedSynergies, a joint venture between MedSynergies and Texas Health, will provide management services supporting Texas Health Physicians Group with the addition of PhyServe.

Acquisition of MedicalEdge and PhyServe will add more than 2,300 people to Texas Health. MedicalEdge brings several ancillary services to Texas Health, including sleep lab services, infusion services, diagnostic imaging and chiropractic services.

The Texas Health Board of Trustees approved the acquisition Nov. 16, and the transaction closed Dec. 31.

Texas Health Resources is one of the largest faith-based, nonprofit health systems in the nation and includes 24 acute care and short-stay hospitals that are owned, operated, joint-ventured or affiliated with Texas Health Resources.