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TexSAn Heart Hospital Signs Agreement with Blue Cross and Blue Shield of Texas

Managed Care Contracts Provide 200,000 Members with In-network Access to

MedCath Hospital

CHARLOTTE, N.C., Feb. 25 /PRNewswire-FirstCall/ -- MedCath Corporation (Nasdaq: MDTH), TexSAn Heart Hospital and the hospital's physician partners announced today that the hospital has signed managed care agreements with Blue Cross and Blue Shield of Texas (BCBSTX).

The new contracts provide in-network access to TexSAn Heart Hospital for approximately 200,000 BCBSTX enrollees in the San Antonio area, including enrollees in BCBSTX's Traditional, BlueChoice(R), BlueChoice Solutions and HMO plans.

"We are pleased to reach an agreement that will provide so many people in the San Antonio area access to TexSAn Heart Hospital's high-quality services and expertise in cardiovascular care," said Ed French, MedCath's President and Chief Executive Officer. "This agreement and others we've added at TexSAn and other MedCath hospitals over the past several months continue to underscore the desire of local plans to enhance access to high-quality and convenient cardiovascular and acute care services for which MedCath hospitals and its partnerships are known."

BCBSTX Traditional members currently have access to TexSAn Heart Hospital.

The new agreements for BCBSTX's BlueChoice, BlueChoice Solutions and HMO networks have an effective date of April 1, 2008.

TexSAn Heart Hospital is a licensed acute care facility with a primary focus on providing leading cardiovascular care to the Southwest Texas region. Opened in January 2004, the hospital recently announced an expansion project that will double existing capacity to 120-beds and expand the services offered at the hospital.

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 manage the cardiovascular program at various hospitals and provide services in diagnostic and therapeutic facilities in various states.

SOURCE MedCath Corporation
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