MedCath Corporation Agrees to Sell Interest in Tucson Heart Hospital to Carondelet Health Network
June 20 2006 - 8:38AM
PR Newswire (US)
CHARLOTTE, N.C. and TUCSON, Ariz., June 20 /PRNewswire-FirstCall/
-- MedCath Corporation (NASDAQ:MDTH) and Carondelet Health Network
jointly announced today that the two parties have entered into an
agreement, subject to the fulfillment of certain conditions, which
will result in Carondelet Health Network purchasing the 58.8
percent of the Tucson Heart Hospital owned by MedCath. Currently,
Carondelet Health Network owns 20 percent of the facility and
physician partners own 21.2 percent. At the conclusion of this
transaction, Carondelet will own 78.8 percent of the heart
hospital. Founded in 1997, Tucson Heart Hospital is a 58-bed,
hospital providing comprehensive heart care for the Tucson
community. Carondelet Health Network ownership of the Tucson Heart
Hospital resulted from a 1999 transaction. Carondelet Health
Network is a comprehensive Catholic, non-profit healthcare system
comprised of three acute care hospitals, totaling 733 acute care
beds, outpatient facilities, and a fifteen multi-site location
Carondelet Medical Group. MedCath, headquartered in Charlotte,
N.C., is a healthcare provider focused on the diagnosis and
treatment of cardiovascular disease. Upon completion of the pending
transaction, MedCath will own interest in and operate eleven
hospitals in eight states with a total of 667 licensed beds. In
making the announcement, Ed French, President and CEO of MedCath
said, "MedCath and Carondelet Health Network, in collaboration with
physician partners, have for the past several months evaluated the
strategic direction of the Tucson Heart Hospital in the context of
strengthening the network relationship with Carondelet Health
Network. We jointly concluded that the full integration of Tucson
Heart Hospital into the Carondelet Health Network would strengthen
the heart hospital's ability to meet the community's growing
healthcare needs." Sally Jeffcoat, President and CEO of Carondelet
Health Network said, "The integration of Tucson Heart Hospital as a
member of our health network will enhance our mission to serve the
needs of the community, provide comprehensive services and outreach
through the integration of our clinical programs, resources and
facilities. We value our historical partnership with Tucson Heart
Hospital, and are enthusiastic about working with our partners,
employees and community physicians to continue to provide
exceptional heart care to our community." In speaking to the
strategic value of this transaction, French adds, "Our national
development pipeline is robust. This transaction will strengthen
our balance sheet and diversification efforts in other existing
properties and new properties to facilitate a growth strategy to
which we committed earlier this year." Terms of the transaction are
not disclosed pending completion of a Definitive Agreement,
satisfaction of customary closing conditions and closing, which are
expected to take place within 90 days. 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. Upon completion of the pending divestiture
of its ownership in Tucson Heart Hospital, MedCath will own
interests in and operate eleven hospitals with a total of 667
licensed beds, located in Arizona, Arkansas, California, Louisiana,
New Mexico, Ohio, South Dakota, and Texas. In addition, MedCath
provides cardiovascular care services in diagnostic and therapeutic
facilities located in various states. http://www.medcath.com/
Carondelet Health Network, located in Tucson, Arizona, is a
Catholic, non- profit healthcare system dedicated to responding to
the healthcare needs of Southern Arizonans. Founded by the Sisters
of St. Joseph of Carondelet, Carondelet facilities include
Carondelet St. Mary's Hospital and Carondelet St. Joseph's Hospital
(both awarded "100 Top Hospitals"), Carondelet Holy Cross Hospital
in Santa Cruz County, and the 75 physicians and care providers at
15 Carondelet Medical Group locations. Carondelet Health Network
has provided healthcare services for more than 125 years, is
dedicated to Healthcare That Is Safe, Healthcare That Works, and
Healthcare That Leaves No One Behind. Carondelet Health Network is
a member of Ascension Health. More information is available at
http://www.carondelet.org/ . Parts of this announcement contain
forward-looking statements that involve risks and uncertainties.
Although MedCath 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. MedCath's actual
results could differ materially from those projected in these
forward-looking statements. MedCath does 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 "Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations-Risk Factors and
Forward Looking Statements" in MedCath's Quarterly Report on Form
10-Q for the quarterly period ended March 31, 2006. A copy of this
report is available on the Internet sites of the Securities and
Exchange Commission at http://www.sec.gov/. DATASOURCE: MedCath
Corporation CONTACT: Ed French, President and Chief Executive
Officer or James E. Harris, Chief Financial Officer of MedCath
Corporation, +1-704-708-6600; or Letty Ramirez, Vice President,
Marketing and Planning of Carondelet Health Network,
+1-520-872-7061, or Public Relations Cell, +1-520-349-1845 Web
site: http://www.medcath.com/ http://www.carondelet.org/
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