CHARLOTTE, N.C., Aug. 9 /PRNewswire-FirstCall/ -- MedCath
Corporation (Nasdaq: MDTH), and its physician partners jointly
announced today they have entered into a definitive agreement for
Vanguard Health Systems to acquire substantially all the assets of
Arizona Heart Hospital. The transaction is expected to close during
MedCath's first quarter of fiscal 2011, which ends on December 31, 2010, subject to certain closing
conditions.
Beginning with its fourth quarter of fiscal 2010, which ends
Sept. 30, MedCath will account for
Arizona Heart Hospital as an asset-held-for-sale for current and
prior reporting periods.
Over the past decade, Arizona Heart Hospital and its physician
partners have established one of the country's top cardiovascular
hospitals. In November, the 59-bed facility was one of four MedCath
hospitals ranked among the nation's 100 Top Hospitals® for
cardiovascular care – the sixth time it earned that honor in the 11
years the study has been performed by Thomson-Reuters. It was also
one of three MedCath hospitals cited for being among the leading
hospitals in America by Consumers' Checkbook survey, according to
the May/June 2009 issue of AARP The
Magazine. And recently HealthGrades, the leading independent health
care ratings organization, ranked Arizona Heart Hospital among the
top 5 percent of hospitals in the nation and No. 1 in Arizona for overall cardiac services and
vascular surgery.
"Arizona Heart Hospital exemplifies the MedCath model of
patient-focused, high quality care," said O. Edwin French, MedCath's president and CEO.
"We're proud of how, working with our physician partners, Arizona
Heart Hospital has earned a sterling reputation, and we know the
new owners will continue that legacy. We wish them great
success."
Under the Asset Purchase Agreement, Vanguard will acquire
substantially all of the assets of Arizona Heart Hospital for
$32.0 million plus certain net
working capital and assume approximately $400,000 in capital leases. Arizona Heart
Hospital will retain accounts receivable and the remaining
liabilities. Based on current asset and liability amounts, which
are subject to change with the passage of time, MedCath anticipates
that total net proceeds received from the transaction, after
payment of retained liabilities and collection of accounts
receivable, will be approximately $31.5
million, after estimated closing costs and estimated income
tax.
About MedCath
MedCath Corporation, headquartered in Charlotte, N.C., is a health care 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 825 licensed beds, located in Arizona, Arkansas, California, Louisiana, New
Mexico, 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, including those relating to
the sale of substantially all of the assets of Arizona Heart
Hospital and anticipated proceeds thereof. Although MedCath's
management believes that these forward-looking statements are based
on reasonable assumptions, these assumptions are inherently subject
to various risks, including obtaining required regulatory approvals
and satisfaction of other closing conditions, that are difficult or
impossible to predict accurately and, in some cases, are beyond
MedCath's control. Actual results could differ materially from
those projected in these forward-looking statements. MedCath
assumes no obligation to update these statements in a news release
or otherwise should material facts or circumstances change in ways
that would affect their accuracy.
SOURCE MedCath Corporation
Copyright g. 9 PR Newswire