MedCath Announces Acquisition of Ownership in Arizona Cath Lab
April 02 2008 - 7:30AM
PR Newswire (US)
CHARLOTTE, N.C., April 2, 2008 /PRNewswire-FirstCall/ -- MedCath
Corporation (NASDAQ:MDTH) announced today that MedCath Partners,
LLC has acquired a 27.4 percent interest in a joint venture known
as Southwest Arizona Heart and Vascular Center, LLC. The joint
venture provides cardiac catheterization lab services to Yuma
Regional Medical Center (the "Hospital") in Yuma, Arizona under a
Management and Service Agreement with the Hospital. The joint
venture will be owned by MedCath and Heart, Lung and Vascular
Center of Yuma, Inc., a physician owned entity. The facility is
located on the campus of Yuma Regional Medical Center, about 180
miles southwest of Phoenix. As part of the agreement, MedCath
Partners, LLC will assume management of the joint venture. MedCath
will also work with the physicians and hospital to add additional
capacity to the facility as well as work to add additional services
to the outlying community. "We are very pleased to announce this
new partnership with Heart, Lung and Vascular Center of Yuma,
Inc.," said Ed French, MedCath's President and Chief Executive
Officer. "The top-quality medical staff and hospital and MedCath
have a common belief that our collective strengths will add to an
already- successful venture. This venture is the fourth added since
last summer, confirming our belief that MedCath Partners is a key
element in our strategic growth plan for MedCath." "We are excited
about the launch of this partnership with MedCath," said Dr. Khidir
Osman with Heart, Lung and Vascular Center of Yuma, Inc. "MedCath
clearly shares our commitment to deliver superior cardiovascular
services to the Hospital and this region and bring our care to a
growing number of patients." MedCath acquired its 27.4 percent
interest for $8.5 million and anticipates that the joint venture
will add approximately $0.05 in diluted earnings per share
annually. 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, +1-704-
708-6600; or Art Parker, Interim Chief Financial Officer,
+1-704-708-6600, both of MedCath Corporation Web site:
http://www.medcath.com/
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