Valencia County approves hospital operating agreement naming Brazos Health Partners exclusive operator

Valencia County commissioners voted Feb. 4 to approve a hospital operating agreement that designates Brazos Health Partners (BHP) as the exclusive operator of the county hospital once construction is finished.

County staff described the arrangement as a license to operate the county-owned hospital: the county retains ownership of the land, building, equipment and inventory while BHP will run day‑to‑day operations, staffing, licensing, accreditation and compliance. “BHP is responsible for the day to day operations, staffing, licensing, accreditation, maintenance, insurance, and compliance with applicable laws, and it retains all operating revenue while bearing all operating costs,” county staff said during the presentation.

The agreement ties compensation to hospital net operating income and includes indemnification, insurance requirements, reporting obligations and transition provisions so assets revert to the county if the agreement expires or terminates. Counsel said exhibits B and C (the equipment and inventory list) cannot be completed until the county has a final inventory; the board delegated authority to the county manager and chairman to execute the agreement once those exhibits are finalized.

Questions from commissioners focused on licensure, asset accounting and depreciation. Staff clarified the county is granting a permission or license to use county assets (not state DOH licensure), and committed to work with finance to ensure equipment—especially high-value items such as MRI machines—are captured accurately for depreciation and audits.

Outcome: The commission approved the motion to adopt the operating agreement and delegated signing authority to the county manager and chair pending completion of exhibits listing equipment and inventory.