Here’s what we know about the $1B Texas General Medical Center in North McAllen so far

There’s an ambitious $1 billion real estate development in North McAllen planned to open by 2028, but its developers have been quiet for months. 

In mid-September 2025, the developers behind the Texas General Medical Center announced plans for a new 300-bed acute-care hospital in McAllen, touting both patient care and medical education for the Rio Grande Valley.

The project would need about 4,000 employees once opened. Plans include a graduate medical education program, a research academic center, and a surgical ‘innovation’ campus. 

The new hospital is a partnership between Tennessee consultancy Ovation Healthcare and Coaction Group, with offices in Puerto Rico and Arizona. 

Subdivision plans reviewed by the city of McAllen zoning department in November 2025 show that Texas General Medical Center would be built on a 52-acre lot within Tres Lagos. 

That’s the master planned development operated by local developer Rhodes Enterprises, on the southeast corner of Monte Cristo and Shary Road at 5200 Monte Cristo Road. A sign has been recently posted at the future hospital site. 

ML Rhodes LTD owns the land where the hospital would be built, while the developer was identified as David Chacon of Brownstone Consultants through Proaction Skyline Real Estate Holdings LLC, a Delaware corporation. 

Chacon deferred comment for this news story to Texas General Medical Center representatives. Melden & Hunt Inc. in Edinburg are the engineers on the project, records show. 

Nick Rhodes, of Rhodes Enterprises, did not respond to an interview request about the project.

Rhodes has served on the South Texas Health System Board of Governors since 2024, a competitor hospital system owned by Pennsylvania-based Universal Health Services. 

There’s a South Texas Health System Clinic, which opened in April 2023 at Tres Lagos in a commercial plaza near the entrance for family medicine and outpatient rehabilitation, but that location quietly closed in December 2025. 

The proposed hospital would sit near the Texas A&M Higher Education Center at McAllen, which began a Bachelor of Science in Nursing program in the spring, as well as biomedical sciences, public health, and pharmacy technician programs. 

Texas A&M officials told the Rio Grande Valley Business Journal there are no formal partnerships or plans with the hospital at this time. 

In February, Texas General Medical Center leaders met with executives and faculty at South Texas College to “discuss the future of healthcare workforce development in our region.” The company touted that the collaboration with educational institutions “is a vital part of the predevelopment phase as we explore ways to strengthen nursing and allied health pipelines across South Texas.” 

As of April 24, the Texas Health and Human Services Department had no active licenses for any healthcare facility related to Texas General Medical Center. It was not immediately clear if there were any applications on file. 

Ovation Healthcare’s CEO Dr. Dwaune Gunter is a partner in the new hospital deal, the company has roots in Tennessee and is also a hospital consultancy focused on efficiency, streamlined supply chain and revenue management strategies to independent hospitals nationwide. 

Coaction International Development boasts on its website that it has completed real estate deals totaling $3 billion over three decades, across 20 healthcare facilities. The company describes itself as a “vertically integrated healthcare real estate operations firm specializing in the ownership, development, and management of healthcare facilities across the continuum of care.” 

Coaction International Development is led by CEO Glen Adams. 

“Not only will the hospital deliver world-class healthcare to the families of the Rio Grande Valley, but it will also create a hub for education, innovation, and research that will shape the next generation of physicians and healthcare leaders,” he said.

The company is crowdsourcing $19.2 million in equity from investors for a land deal for a different hospital in Utah, which is expected to be completed by 2028. The company has raised $1 million, promising interest of 10% after selling the property again in 5 to 7 years, according to its EquityNet profile. The business is partnering with QHR Health as its hospital operator there, Cain Brothers as its investment bank, and has secured Layton Construction as its general contractor. 

The Utah hospital would be financed through a tax-exempt bond because the proposed facility would be a nonprofit, but the land underneath it would be owned by a subsidiary controlled by Coaction Group and leased to the hospital.