MedCath Enters Definitive Agreement to Sell Dayton Heart Hospital to Good Samaritan Hospi...( CHARLOTTE N.C. March 24 /- MedCat...),Health

CHARLOTTE, N.C., March 24 /PRNewswire-FirstCall/ -- MedCath Corporation (MedCath) (Nasdaq: MDTH), its physician partners and Good Samaritan Hospital (Dayton, Ohio) jointly announced today that the parties have entered into a definitive agreement pursuant to which Good Samaritan Hospital will acquire substantially all of Dayton Heart Hospital's assets. The total amount being paid is approximately $55.0 million, a portion of which is allocated to customary non-competition obligations. The transaction is expected to close on or about May 16, subject to customary closing conditions.

Net proceeds to MedCath, after estimated income tax related to the gain on sale, are anticipated to total approximately $32.5 million. MedCath will use the proceeds for general corporate purposes, including investment in other hospital projects. Beginning with its second quarter of fiscal 2008, which ends March 31, MedCath will account for Dayton Heart Hospital as an asset held-for-sale for the current and prior reporting periods.

Opened in 1999, Dayton Heart Hospital is a 47-bed hospital focused on providing cardiovascular care to the Dayton community. A member of the Premier Health Partners system, Good Samaritan Hospital (Dayton, Ohio) is a 577-bed, full-service teaching facility with a 75-year history that delivers best-in- care cardiovascular, cancer and orthopedics services. Recently, the Joint Commission awarded gold seal certifications to the hospital's outstanding heart failure, heart attack, breast cancer and artery bypass graft surgery programs. Additionally, HealthGrades, the leading independent quality monitoring organization in the country, named Good Samaritan as a recipient of its 2008 Distinguished Hospital Award for Clinical Excelle
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