CHARLOTTE, N.C., Feb. 19 /PRNewswire-FirstCall/ -- MedCath Corporation (Nasdaq: MDTH) announced today that MedCath Partners, LLC has entered into a new strategic relationship with Solaris Health System of Edison, N.J.
MedCath Partners, LLC, will participate in a new venture to manage the catheterization laboratories of Solaris's two acute care hospitals, JFK Medical Center and Muhlenberg Regional Medical Center. Solaris, local cardiologists, and MedCath will own equal shares of the management company.
"Our partnership with MedCath will reinforce our commitment to providing quality and compassionate healthcare services to our diverse communities," said John P. McGee, President and Chief Executive of Solaris. "We value MedCath's experience in providing excellent cardiovascular services and maintaining strong relationships with the cardiologists. We are excited about using this venture as a way to continue to improve the scope and quality of cardiovascular services to the patients in our community."
Edison-based JFK Medical Center consists of a 399 bed teaching hospital and the adjacent 94 bed JFK Johnson Rehabilitation Institute. Muhlenberg Regional Medical Center is a 396-bed acute care facility in Plainfield, N.J., that provides inpatient and outpatient services in all major medical specialties. Solaris was created in 1997 when the two hospitals consolidated into one organization. The Solaris network also includes long-term care centers, assisted living communities and schools of nursing, medical imaging and therapeutic sciences.
"This venture with Solaris - MedCath Partners' third agreement announced since last summer - is a key element in our five-point strategic growth plan for MedCath," said Ed French, MedCath's President and Chief Executive Officer. "We are excited about the opportunity to work with such an excellent organization and high-quality physicians to expand this cardiac catheterization program in Central New Jersey."
MedCath will make a capital investment of approximately $1.0 million in the venture and the other members will make pro rata capital contributions as well. MedCath anticipates that this venture will add $0.02 earnings per diluted share annually.
MedCath Partners, LLC's primary focus is assisting healthcare organizations form joint ventures to manage hospital-based cardiac catheterization laboratories.
MedCath Corporation, headquartered in Charlotte, N.C., is a healthcare provider focused on high acuity services with the diagnosis and treatment of cardiovascular disease being a primary service offering. MedCath owns interests in and operates ten hospitals with a total of 663 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota, and Texas. In addition, MedCath and its subsidiary MedCath Partners provide services in diagnostic and therapeutic facilities in various states.
Parts of this announcement contain forward-looking statements that involve risks and uncertainties. Although management believes that these forward- looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant economic, regulatory and competitive uncertainties and contingencies that are difficult or impossible to predict accurately and are beyond our control. Actual results could differ materially from those projected in these forward-looking statements. We do not assume any obligation to update these statements in a news release or otherwise should material facts or circumstances change in ways that would affect their accuracy.
These various risks and uncertainties are described in detail in "Risk Factors" in MedCath's Form 10-K filed with the Securities and Exchange Commission on December 14, 2007. A copy of this registration statement, including exhibits, is available on the internet site of the Securities and Exchange Commission at http://www.sec.gov.
|SOURCE MedCath Corporation|
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