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UT/Seton Ground Lease

The Ground Lease, as approved by the Central Health Board of Managers on Oct. 15, 2014, will allow Seton to construct the new teaching hospital on UT property, where students at the new medical school can be taught and trained. It will ensure the hospital continues to provide basic, safety-net services to vulnerable Travis County residents who lack health insurance. The new hospital, called Seton Medical Center at the University of Texas, will cost $295 million and is expected to open in 2017. It will replace the University Medical Center Brackenridge.

The hospital represents a major benefit of Proposition 1, a Central Health ballot measure that Travis County voters approved in 2012 to provide funding for the Dell Medical School at The University of Texas at Austin, and innovative programs such as an integrated delivery system for safety-net health care in Travis County. The agreement will allow Seton to build the teaching hospital on UT property, and Central Health’s participation ensures that Seton will use the hospital to maintain safety net services for Travis County for 60-80 years. If Seton defaults on that commitment, it could lose its investment in the hospital.

The agreement is structured in two parts: a Ground Lease from UT to Central Health, and a corresponding Sublease from Central Health to Seton. Both documents are available below. It is part of a series of agreements formalizing the partnership between Central Health, Seton and their joint effort to create and support a Community Care Collaborative that will work with UT. These agreements require the Dell Medical School to directly assist Central Health in fulfilling its mission: to create and enhance access to health care for those who need it most. The faculty and residents of the Dell Medical School will provide Travis County with a supply of primary care physicians, and they will improve the availability of specialists in Travis County.

Download a copy of the UT ground lease

Download a copy of the Seton ground sublease