Physicians Group Buys Burbank Hospital

Doctors at Burbank Community Hospital on Wednesday completed an agreement to purchase the ailing facility from the nonprofit foundation that owns it as part of a financial strategy the doctors hope will boost falling revenue.

And when the hospital changes hands, so will its name. Doctors said the new name will be Thompson Memorial Medical Center, in honor of the hospital’s founder, Elmer H. Thompson.

The transaction was approved in principle in August, hospital Administrator William Daniel said. Under the terms of the agreement, Gateway Healthcare of Burbank Inc., a partnership of doctors, will take control Dec. 1 from the nonprofit Burbank Community Hospital Foundation.

In the meantime, the group needs to raise $600,000 to $700,000 as operating capital, Daniel said. The purchase price of the hospital’s operations and equipment, about $2 million, will be paid over 10 years, Daniel said, and the structure will be leased from the foundation.

Daniel said the physicians group will attempt to enter into limited partnerships with investors to raise the funds.

Dr. Roberto Beaton, chairman of the physicians group, said in a prepared statement that the hospital will expand its outpatient services.