MedCath Announces Venture With Two New Jersey Hospitals
February 19 2008 - 7:30AM
PR Newswire (US)
CHARLOTTE, N.C., Feb. 19 /PRNewswire-FirstCall/ -- MedCath
Corporation (NASDAQ:MDTH) announced today that MedCath Partners,
LLC has entered into a new strategic relationship with Solaris
Health System of Edison, N.J. MedCath Partners, LLC, will
participate in a new venture to manage the catheterization
laboratories of Solaris's two acute care hospitals, JFK Medical
Center and Muhlenberg Regional Medical Center. Solaris, local
cardiologists, and MedCath will own equal shares of the management
company. "Our partnership with MedCath will reinforce our
commitment to providing quality and compassionate healthcare
services to our diverse communities," said John P. McGee, President
and Chief Executive of Solaris. "We value MedCath's experience in
providing excellent cardiovascular services and maintaining strong
relationships with the cardiologists. We are excited about using
this venture as a way to continue to improve the scope and quality
of cardiovascular services to the patients in our community."
Edison-based JFK Medical Center consists of a 399 bed teaching
hospital and the adjacent 94 bed JFK Johnson Rehabilitation
Institute. Muhlenberg Regional Medical Center is a 396-bed acute
care facility in Plainfield, N.J., that provides inpatient and
outpatient services in all major medical specialties. Solaris was
created in 1997 when the two hospitals consolidated into one
organization. The Solaris network also includes long-term care
centers, assisted living communities and schools of nursing,
medical imaging and therapeutic sciences. "This venture with
Solaris - MedCath Partners' third agreement announced since last
summer - is a key element in our five-point strategic growth plan
for MedCath," said Ed French, MedCath's President and Chief
Executive Officer. "We are excited about the opportunity to work
with such an excellent organization and high-quality physicians to
expand this cardiac catheterization program in Central New Jersey."
MedCath will make a capital investment of approximately $1.0
million 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. MedCath
Partners, LLC's primary focus is assisting healthcare organizations
form joint ventures to manage hospital-based cardiac
catheterization laboratories. 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 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 of MedCath
Corporation, or, Thomas K. Hearn CEO of MedCath Partners,
+1-704-708-6600 Web site: http://www.medcath.com/
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