MDTH Medcath Corp. (MM)

MedCath Corporation to Partner With Montana's Largest Hospital to Develop Heart Hospital CHARLOTTE, N.C. and GREAT FALLS, Mont., June 30 /PRNewswire-FirstCall/ -- MedCath Corporation (NASDAQ:MDTH) and Benefis Healthcare of Great Falls, Mont., today announced a strategic alliance to grow and enhance Benefis' cardiovascular services, culminating in new heart tower to be built on the east campus of Benefis Healthcare. The agreement, which has been approved by the boards of MedCath and Benefis, includes a multiple-stage development plan for Benefis, the largest hospital in Montana. Under the agreement, MedCath will immediately begin managing Benefis' existing cardiovascular services and will coordinate recruiting activities to increase the number of cardiologists in the Great Falls market to better meet the need for cardiovascular services in Great Falls and the surrounding region. MedCath will also begin to work with Benefis on the design and development of a new tower that will include the new heart hospital to be located on the Benefis East Campus, which will be managed by MedCath. Under terms of the agreement, MedCath will enter into contractual arrangements with Benefis Healthcare, which will create a joint venture upon completion of the new heart tower building. MedCath anticipates that its investment in the joint venture will range between $9 million and $11 million. Construction of the heart tower, which is anticipated to begin in 18 to 24 months, and formation of the joint venture, which is anticipated to occur in approximately 36 months, are subject to closing conditions and to all applicable Montana law and regulations being satisfied. "Our new partnership with MedCath will help us to further improve heart services for our community and region," says John Goodnow, President and Chief Executive Officer of Benefis. "With MedCath's help, we will continue to improve our facilities and technology, we will recruit additional excellent heart medical staff, and we will improve our patients' access to care." "MedCath has demonstrated that it knows how to provide superior clinical results in cardiovascular care," Goodnow says. "Great Falls and the surrounding region will benefit from their expertise in heart services." "We are pleased to be entering this long-term partnership with Benefis," says John Casey, MedCath's Chairman and Chief Executive Officer. "This reflects our largest venture with a not-for-profit community hospital since we announced our intention to partner with existing providers to make our cardiovascular expertise available in a host of different partnership arrangements. It is an important step forward for MedCath. "We are deeply committed to the same vision that Benefis has: to be the model for quality and accessible healthcare services to the communities we serve," Casey continues. "We look forward to working with the Benefis team to enhance the quality of heart care for the people in Great Falls and the surrounding region." For the fourth consecutive year, MedCath hospitals on average exhibited lower mortality rates, shorter length of stays, and a higher percentage of patients discharged to their homes instead of to another healthcare provider, compared with 1,013 peer community hospitals nationwide that perform open- heart surgery. The study that demonstrated these findings was conducted by The Lewin Group, Inc., a nationally recognized consultant to the health and human services industries. The study also demonstrated that MedCath hospitals have on average a higher case mix index for cardiac patients, which takes into account complexity and severity. MedCath Corporation, headquartered in Charlotte, N.C., is a healthcare provider focused on the diagnosis and treatment of cardiovascular disease. MedCath focuses on serving the unique needs of patients suffering from cardiovascular disease. MedCath currently owns interests in and operates twelve hospitals with a total of 727 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota, and Texas. In addition to its hospitals, MedCath provides cardiovascular care services in diagnostic and therapeutic facilities located in various states and through mobile cardiac catheterization laboratories. Benefis Healthcare is a faith based mission-driven, locally controlled and governed community/regional hospital with Catholic sponsorship via Providence Services. Benefis Healthcare's 2,400 employees provide comprehensive services on two campuses in Great Falls, Montana. The East campus includes the state's largest hospital facility. Benefis Healthcare serves as a regional referral center for an area of 45,000 square miles. Benefis has 502 beds on its two campuses. Benefis Healthcare is a top performing hospital, having recently earned the 2005 Distinguished Hospital Award for Clinical Excellence(TM) from HealthGrades, a nationally recognized healthcare-quality rating company. Additionally, Benefis has been named a 100 Top Performance Improvement Leader by Solucient, has received 5-star ratings from Cleverly and Associates, and has the distinction of having the Mountain Pacific Quality Health Foundation's Hospital Quality Award. DATASOURCE: MedCath Corporation CONTACT: John Casey, Chairman & Chief Executive Officer, or Tom Hearn, Chief Development Officer of MedCath, +1-704-708-6600; or Brandy Hansen- Solyst, Community Relations, Marketing Manager, +1-406-455-5461, or Laura Goldhahn-Konen, Chief Operating Officer, +1-406-455-5478, or John Goodnow, President and Chief Executive Officer, +1-406-455-5469, all of Benefis

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