Surgical Development Partners of Franklin, TN and about 50 localdoctors received approval six days ago from the US Bankruptcy Courtin El Paso to acquire the facility at 1416 George Dieter Dr. on thecity's east side. The sale includes a neighboring 40,000-sf medicaloffice building and 6.4 acres of adjacent land.

The purchase, financed by Health Care REIT of Toledo, OH,encompasses shares held by a partnership of 25 doctors who were theprevious owners and original investors in the four-year-oldhospital. The 25 doctors have all joined the new partnership.

According to Surgical Development president and CEO G. EdwardAlexander, he learned of the potential buy from Health Care REITbefore the property went into bankruptcy. When the previous ownersdecided to file for Chapter 11, they asked Alexander's company tomake a bid they could use in court as a basis for valuation. "Thecourt awarded us stalking-horse status," Alexander says. "The offerwe made became the floor for any subsequent sale." UltimatelySurgical Development faced only one other bidder for the asset,Rockwall Hospitals Inc. of Richardson, TX. The winner was selectedon the basis of price.