MedCath Sells Sun City Cardiac Center Associates to Banner Health
October 01 2009 - 7:30AM
PR Newswire (US)
CHARLOTTE, N.C., Oct. 1 /PRNewswire-FirstCall/ -- MedCath
Corporation (NASDAQ:MDTH), a healthcare provider focused on high
acuity healthcare services, predominately the diagnosis and
treatment of cardiovascular disease, today announced the sale of
Sun City Cardiac Center Associates ("Sun City"), a partnership
owned 60% by MedCath Partners, LLC and 40% by certain physician and
other investors, to Banner Health, an Arizona nonprofit health
system. Sun City has provided cardiac catheterization services to
Banner Health's Boswell Hospital and its predecessor owner in Sun
City, Arizona since 1992. The transaction, which was structured as
an asset sale, valued Sun City at $16.9 million, excluding
approximately $0.9 million in working capital retained by the
selling partnership. In addition to its portion of the sale
proceeds, MedCath will lease certain equipment to Banner Health for
approximately $0.3 million annually for three years. The sale was
prompted by a regulatory change that required modifications to the
services agreement between Sun City and Banner Health. After
reviewing potential modifications to that services agreement,
Banner Health and the owners of Sun City determined that a sale of
its assets was in the best interests of the parties. The sale was
effective September 30, 2009. "We have enjoyed a long, mutually
beneficial relationship with our physician partners and the
hospital to which we've provided services," said O. Edwin French,
MedCath's president and CEO. "We're proud of our legacy of
participating in this cath lab and providing quality care to the
community residents." 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 nine hospitals with a total of 755 licensed beds, located
in Arizona, Arkansas, California, Louisiana, New Mexico, South
Dakota, and Texas. MedCath is in the process of developing its
tenth hospital, which is anticipated to open in fall 2009, in
Kingman, Ariz. In addition, MedCath and its subsidiary MedCath
Partners provide services in diagnostic and therapeutic facilities
in various states. DATASOURCE: MedCath Corporation CONTACT: O.
Edwin French, President & Chief Executive Officer,
+1-704-815-7700; Art Parker, Chief Financial Officer,
+1-704-815-7700, both of MedCath Corporation Web Site:
http://www.medcath.com/
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