MedCath Corporation, Benefis Agree To End Strategic Alliance
October 02 2006 - 6:45PM
PR Newswire (US)
CHARLOTTE, N.C., Oct. 2 /PRNewswire-FirstCall/ -- MedCath
Corporation (NASDAQ:MDTH) and Benefis Healthcare of Great Falls,
Mont., today announced their plans to end their strategic alliance.
The alliance, announced in June 2005, was entered into with the
intention of the two companies jointly working to evaluate the
potential to expand and grow Benefis' cardiovascular services
through an equity arrangement. The companies announced the alliance
will terminate on or about Dec. 31. "When we entered into this
agreement more than a year ago, we both understood that this was a
complex arrangement that had many moving parts. In the end, some of
these caused both of us to conclude that converting the management
agreement to an equity partnership did not fit either of our
strategic ambitions," says Ed French, MedCath's president and chief
executive officer. "We appreciate the leadership at Benefis for
originally working with us to learn if we could structure something
that might have involved an equity infusion. We have mutually
agreed to not continue the exploration, and we do so on good
terms." "Strategically, we have determined that it is in our best
interest to pursue our market objectives independently," says John
Goodnow, President/CEO, Benefis Healthcare "We wish MedCath only
the best as they pursue their development goals and strategies.
Benefis remains as committed as ever to continuing to grow and
develop our cardiovascular services to best meet the expanding
needs of our communities." Under the strategic alliance, MedCath
has been managing Benefis' cardiovascular services and working with
Benefis on the design and initial development stages of a new
patient tower that will include four new floors dedicated entirely
to comprehensive, state-of-the-art heart care. The original concept
included an opportunity for MedCath to invest equity into the
physical plant and operations. Benefis Healthcare, one of the
Northwest's leading healthcare providers, is a faith based,
mission-driven, locally controlled and governed community/regional
Health System, which includes the state's largest acute care
hospital. 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 eleven hospitals with a
total of 667 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. DATASOURCE: MedCath Corporation CONTACT: O. Edwin
French, President & Chief Executive Officer, or James E.
Harris, Chief Financial Officer, of MedCath Corporation,
+1-704-708-6600 Web site: http://www.medcath.com/
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