MedCath Plans 60-bed Expansion at TexSAn Heart Hospital
February 11 2008 - 4:30PM
PR Newswire (US)
Conversion of Shelled Space an Integral Part of MedCath's Growth
Plans CHARLOTTE, N.C., Feb. 11 /PRNewswire-FirstCall/ -- MedCath
Corporation (NASDAQ:MDTH) and its physician partners today
announced plans to double the number of inpatient beds at TexSAn
Heart Hospital, San Antonio, Texas, creating a 120-bed acute care
and heart hospital. The expansion will convert approximately 36,130
square feet of shelled space into 60 inpatient beds, which will be
used to expand the hospital's cardiovascular services and to
accommodate other high-acuity services. Project cost will total
approximately $10.75 million. Opening of the new section is
scheduled for fall of 2008. MedCath will make an additional equity
investment in TexSAn related to the expansion, which will increase
MedCath's ownership stake from 51.0% to 66.57%. "The cost effective
build-out of shelled space in selected markets is one of the key
elements of our strategic growth plan," said Ed French, MedCath's
President and Chief Executive Officer. "This expansion will provide
needed capacity for our growing cardiovascular program as well as
provide vital additional high-acuity services to the San Antonio
area. A part of our company-wide strategy is to diversify services
in several markets while continuing to expand our core competencies
in heart care, and TexSAn's success and expansion is the best
example of our continuing to move decidedly forward in meeting that
goal." The TexSAn plans follow a similar announcement last year at
MedCath's Arkansas Heart Hospital, which converted 18,900 square
feet of shelled space into 28 inpatient beds. The additional
inpatient beds at Arkansas Heart Hospital became operational late
January 2008. "With today's announcement of the expansion of TexSAn
Heart Hospital, we have announced in the last ten months expansion
and development projects that will increase our consolidated bed
count by over 50%," said French. "We are extremely pleased with the
progress that we're making in growing our Company and expanding our
services to a larger patient population." TexSAn, opened in January
2004, is a licensed acute care facility with a primary focus on
providing leading cardiovascular care to the Southwest Texas
region. The hospital features four operating suites, four cardiac
catheterization labs, a 10-bed day-patient area and an emergency
department. 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 an interest in and operates ten
hospitals with a total of 663 licensed beds, located in Arizona,
Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota,
and Texas. In addition, MedCath and its subsidiary MedCath Partners
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 Form 10-K filed with the Securities and
Exchange Commission on December 14, 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, or Art
Parker, Interim Chief Financial Officer, both of MedCath
Corporation, +1-704-708-6600 Web site: http://www.medcath.com/
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