MedCath Corporation Announces 120-bed General Acute Care Expansion of Louisiana Hospital
May 24 2007 - 11:39AM
PR Newswire (US)
Hospital to be renamed "Louisiana Medical Center and Heart
Hospital" CHARLOTTE, N.C., May 24 /PRNewswire-FirstCall/ -- MedCath
Corporation (NASDAQ:MDTH) and its physician partners announced
today a 120-bed general acute care expansion of its hospital
located in Lacombe, La. Construction will begin late this summer
and will include a new 109,000 square-foot, four-story patient
tower containing capacity for 120 private rooms. To recognize its
expanded service capabilities, the hospital, which opened in
February 2003, will be renamed the Louisiana Medical Center and
Heart Hospital. After expansion, the hospital will contain capacity
for 178 private rooms - more than tripling its current bed
capacity. "The impact of Hurricane Katrina to New Orleans and the
surrounding area has resulted in tremendous population growth in
St. Tammany Parish, our hospital's primary service area," said O.
Edwin French, MedCath's president and chief executive officer. "We
have talked about the importance of expanding our facilities and
diversifying our services while maintaining a strong heart core in
key markets as a critical element of our growth. This is an
excellent example of that strategy." "The physician community is
excited about the opportunity to expand the hospital's service
offering and have the facility and technology necessary to care for
more people," said Dr. Jim Smith, an interventional cardiologist
and member of the hospital's board of directors. "The quality of
our care is exemplified by our recognition as the leading cardiac
program in Louisiana by HealthGrades(R), a healthcare ratings
organization; being designated as a UnitedHealth Premium cardiac
care center; and receiving a national achievement award by the
American Heart Association. We look forward to providing this level
of service for other disease categories as well." Construction is
expected to be completed in late fall of 2008, with 80 patient
rooms being completed initially and capacity for 40 patient rooms
being available for future growth. Project cost related to the
construction of the patient tower and equipping of the initial 80
patient rooms and service areas will total approximately $33.0
million. MedCath anticipates that total net revenue for Louisiana
Medical Center and Heart Hospital will be between $110.0 million
and $120.0 million in fiscal year 2010. MedCath's additional
investment in the hospital will result in MedCath owning
approximately 89.2% of the hospital going forward. MedCath
Corporation, headquartered in Charlotte, N.C., is a healthcare
provider focused primarily on the diagnosis and treatment of
cardiovascular disease. MedCath focuses on serving the unique needs
of patients suffering from cardiovascular disease. MedCath 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, MedCath
manages the cardiovascular program at various hospitals operated by
other parties. Further, MedCath Partners, LLC provides
cardiovascular care services in diagnostic and therapeutic
facilities located in various states. DATASOURCE: MedCath
Corporation CONTACT: O. Edwin French, President & Chief
Executive Officer, +1-704-708-6600, or James E. Harris, Chief
Financial Officer, +1-704-708-6600, both of MedCath Corporation Web
site: http://www.medcath.com/
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