MedCath Announces Venture with Catholic Health East Subsidiary
August 02 2007 - 8:00AM
PR Newswire (US)
CHARLOTTE, N.C., Aug. 2 /PRNewswire-FirstCall/ -- MedCath
Corporation (NASDAQ:MDTH) announced today that its MedCath Partners
Division has entered into a new strategic relationship with St.
Francis Healthcare Services of Wilmington, Del. MedCath Partners,
LLC, is participating in a new venture to manage the
catheterization laboratories of St. Francis Healthcare Services.
The majority of the venture is owned by St. Francis Healthcare
Services, and the balance is owned by local physicians and MedCath
Partners. The venture commenced operations on July 30. "This
venture will allow us to update our cardiac catheterization
laboratories and continue to implement our program for increasing
the level and quality of services available to our patients," said
Clarence "Ted" LaLiberty, President and Chief Executive Officer of
St. Francis Healthcare Services. "We are particularly excited about
the involvement of community cardiologists and MedCath who bring
their experience and expertise to assist us in implementing
clinical improvements and operating efficiencies. We view this type
of arrangement as important to our success. It will assist us in
fulfilling our charitable mission as well as our goal of enhancing
our level of care in order to make our facility more attractive to
patients who might otherwise leave the state to obtain cardiac
services." St. Francis, founded in 1924, is the only Catholic
hospital in Delaware. Services include the St. Francis Heart
Center, 24-hour Emergency Services with fast-track minor emergency
care, Bariatric Center of Excellence, da Vinci Surgical System,
Minimally Invasive Surgery Center, Wound Care,
Sleep/Neurodiagnostics Center, Pain Center, Home Care, Skilled
Nursing Facility, Rehabilitation, Imaging Services, Comprehensive
Women's Services, the St. Francis Foundation and three community
outreach programs. St. Francis Hospital is affiliated with the
Franciscan Care Center at Brackenville. St. Francis is a subsidiary
of Catholic Health East, which includes 34 acute care hospitals and
dozens of other medical facilities across 11 Eastern states from
Maine to Florida. "We are excited to join with St. Francis
Healthcare Services and Catholic Health East, as well as a very
talented group of physicians, to help improve the quality of
cardiovascular care provided to people of Delaware," said Ed
French, MedCath's President and Chief Executive Officer. "Working
together, we are confident that we will identify and implement
strategies for growing cardiovascular capabilities in the region."
MedCath will make a capital investment of $540,000 in the venture
and the other members will make pro rata capital contributions as
well. MedCath anticipates that this venture will add $0.02 earnings
per diluted share annually. This is the second venture announced by
MedCath Partners in just over a month. In June, MedCath Partners
announced a new venture called Coastal Carolina Heart, LLC, a joint
venture with New Hanover Regional Medical Center, a 769-bed
tertiary hospital in Wilmington, N.C., and local physicians. The
joint venture owns and operates the existing Wilmington Heart
Center, an outpatient cardiac catheterization laboratory facility,
and also provides management services to New Hanover's inpatient
catheterization laboratories. MedCath Partners, LLC, formerly known
as MedCath Diagnostics, is dedicated to assisting healthcare
organizations form joint ventures to manage hospital- based cardiac
catheterization laboratories. "MedCath Corporation changed the
division's name to reflect our new focus and our expertise in
building partnerships with physicians and hospital organizations,"
said Thomas K. Hearn, Chief Executive Officer of MedCath Partners.
"Our two latest agreements reflect our ability to use our many
years of operational and partnership experience to expand existing
relationships and to create new ones." 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 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 and
its subsidiary MedCath Partners manage the cardiovascular program
at various hospitals and provide services in diagnostic and
therapeutic facilities in various states. Parts of this
announcement contain forward-looking statements that involve risks
and uncertainties. Although management 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. Actual results could differ materially from those
projected in these forward-looking statements. We do 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 "Risk Factors" in
MedCath's Registration Statement on Form S-3/A filed with the
Securities and Exchange Commission on March 29, 2007. A copy of
this registration statement, including exhibits, is available on
the internet site of the Securities and Exchange Commission at
http://www.sec.gov/. DATASOURCE: MedCath Corporation CONTACT: O.
Edwin French, President & Chief Executive Officer, MedCath
Corporation, +1-704-708-6600, or Thomas K. Hearn, CEO, MedCath
Partners, +1-704-708-6600 Web site: http://www.medcath.com/
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