Today, I am pleased to share with you that The University of Texas System Board of Regents has approved plans for UTMB Health to complete negotiations to lease the Bay Area Regional Medical Center in Webster. We have signed a letter of intent and begun a formal process to evaluate the possibility of a long-term arrangement for the facility.

This is a unique and tremendous opportunity for us to advance UTMB Health’s education, research and patient care mission in a dynamic area that continues to be one of the fastest growing regions in Texas.

The Bay Area Regional Medical Center, which opened in 2014, closed earlier this year. Some of you may wonder why we are taking this action at a time when the health care industry and academic medicine are going through so much change—and as we, ourselves, are working to be more efficient. We have carefully studied and evaluated the potential of this venture to support our mission, and we are confident it will provide us essential new opportunities for our education and research programs.

When a lease is final, we’ll work with our faculty and program leaders, as well as existing physicians in the Bay Area, to determine how best to use the property.

The Webster facility would complement the offerings at our League City Campus, where we have recently opened a new garage and sky bridge and are beginning work on a five-story hospital expansion that will increase our inpatient capacity from 37 beds to 97. The League City Hospital addition should be complete in 2020.

Once more details are available on the lease negotiations and our plans for how best to use the Webster facility, I’ll be sure to let you know. This is an exciting development for our university and the people we serve, and I hope you share that feeling.

Thank you for all you do for UTMB Health and for your support, which will help us to make this new endeavor a success.