Navigation Links
MedCath Enters Definitive Agreement to Sell Dayton Heart Hospital to Good Samaritan Hospital-Dayton
Date:3/24/2008

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 Excellence, which places it among the top 5 percent of hospitals nationwide.

"We've had a successful engagement with physician partners in Dayton and have changed the landscape for delivery of heart services in Central Ohio, typical of what happens when MedCath teams up with doctors to raise the bar for hospital care. As we continue to evolve MedCath, focusing on future expansion in markets that equal or exceed national population growth rates is high on our list of preferences," said O. Edwin French, MedCath's President and Chief Executive Officer. He added, "This transaction furthers enhances our already-strong balance sheet so that our foray into acquired acute care hospitals is enhanced. And, with this transaction we also continue to shift the mix of business within our portfolio as we expand heart care but expand the ratio of diversified services faster."

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. Following completion of the divestiture of Dayton Heart Hospital, MedCath will own an interest in and operate nine hospitals with a total of 616 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, South Dakota, and Texas. MedCath is in the process of developing its tenth hospital, which is anticipated to open in fall 2009, in Kingman, Ariz. 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, including the closing of an anticipated sale of the assets of Dayton Heart Hospital. 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 which is available on the internet site of the Securities and Exchange Commission at http://www.sec.gov.


'/>"/>
SOURCE MedCath Corporation
Copyright©2008 PR Newswire.
All rights reserved

Related medicine news :

1. MedCath Corporation to Present at the Citi 2008 Small and Mid-Cap Conference
2. MedCath Corporation to Present at the Raymond James 29th Annual Institutional Investors Conference
3. MedCath Announces Venture With Two New Jersey Hospitals
4. MedCath Plans 60-bed Expansion at TexSAn Heart Hospital
5. MedCath Corporation Reports First Quarter Earnings
6. MedCath Corporation to Hold Conference Call on First Quarter Results
7. MedCath Corporation to Present at the 26th Annual JPMorgan Healthcare Conference
8. MedCath Corporation to Present at the BMO Capital Markets 2007 Focus on Healthcare Conference
9. MedCath Corporation Reports Fourth Quarter Earnings and Outlook for Fiscal 2008
10. Haemonetics(R) Software Solutions to Launch Application for Workflow Optimization in Blood Collection Centers
11. Companies Not Fully Tapping Potential of Onsite Health Centers
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:4/29/2016)... ... 29, 2016 , ... Coalition Duchenne, a Newport Beach, California ... Duchenne research, participated in the April 25 U.S. Food and Drug Administration advisory ... The meeting at the Marriott Conference Center in Hyattsville, Maryland was attended by ...
(Date:4/29/2016)... ... 29, 2016 , ... Yisrayl Hawkins, Pastor and Overseer at The House of ... and AD, saying it is time to set the record straight. Traditionally, BC and ... simply cannot possibly be true and offers explanation. , “To start with, the Name ...
(Date:4/28/2016)... ... ... is offering a special deal on its webstore. , Buy 1 product and get ANYTHING ... product with lesser value. In addition, a free bonus of 3 top serums in ... "So many women (men, too) love our products and get good results. We want to ...
(Date:4/28/2016)... ... April 28, 2016 , ... CastCoverz!, America’s #1 ... AquaShieldUSA, the country's oldest waterproof cast protector . As the largest one-stop, ... largest selection of daily, night, weatherproof and waterproof covers for most orthopedic devices, ...
(Date:4/28/2016)... ... April 28, 2016 , ... Cosmetic Town, an online ... cosmetictown.com . The forum section was recently revamped and upgraded to allow even more ... in use across the country. , According to the senior editor of Cosmetic Town, ...
Breaking Medicine News(10 mins):
(Date:4/28/2016)... , April 28, 2016 ... "Global Plastic Surgery Products Market 2016-2020" report ... ) , The global plastic surgery ... of 9.47% during the period 2016-2020. , ,The growing ... leading to the growth of the market. Lasers are ...
(Date:4/28/2016)...  The blood testing market in China ... Information and The Freedonia Group in a recent report.  ... The healthcare research firm said that China ... stations and in improving testing at the provincial level.  ... Blood Testing Market in China , which ...
(Date:4/28/2016)... , April 28, 2016 Dr. ... and Ste phen ... ArisGlobal®, a leading provider of cloud-based software solutions for life ... Pharmacovigilance team to bring a wealth of insight to a growing ... pharmacovigilance knowledge. George Phillips joined ArisGlobal in ...
Breaking Medicine Technology: