CHARLOTTE, N.C., Nov. 2, 2010 /PRNewswire-FirstCall/ -- MedCath
Corporation (Nasdaq: MDTH), a healthcare provider focused on high
acuity services, predominantly the diagnosis and treatment of heart
disease, today announced its MedCath Partners division has
completed the sale of its minority ownership in Southwest Arizona
Heart and Vascular Center, LLC. MedCath Partners sold its
approximately 27.0 percent interest to the joint venture's
physician partners for $7.0 million,
effective Nov. 1.
MedCath Partners acquired its interest in the joint venture in
April 2008, and along with Heart,
Lung and Vascular Center – a physician-owned entity – provided
cardiac catheterization lab services to Yuma Regional Medical
Center. MedCath Partners will receive net proceeds equal to
approximately $6.9 million, net of
tax and closing costs. The transaction will result in an
approximate $1.8 million pre-tax loss
in MedCath's first quarter of fiscal 2011, which ends Dec. 31 2010.
"MedCath shared a common belief with our physician partners and
Yuma Regional Medical Center that our collective strengths would
enhance an already successful venture," said O. Edwin French, MedCath's president and CEO.
"We're proud that we were able to make that happen, and we know
Southwest Arizona Heart and Vascular Center will continue to
provide top quality medical care. We wish the best for our
physician partners, the hospital and the community."
This marks MedCath's fourth completed transaction since forming
a Strategic Options Committee in March to consider the sale either
of the entire company or its assets. Since Oct. 4, MedCath has announced the completion of
sales involving its interests in Arizona Heart Hospital, Avera
Heart Hospital of South Dakota and
Heart Hospital of Austin.
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 seven hospitals with
a total of 653 licensed beds, located in Arizona, Arkansas, California, Louisiana, New
Mexico, and Texas. In
addition, MedCath and its subsidiary MedCath Partners provide
services in diagnostic and therapeutic facilities in various
states.
This announcement contains forward-looking statements that
involve risks and uncertainties, including those relating to the
estimated net proceeds MedCath expects to receive from the sale of
its ownership in Southwest Arizona Heart and Vascular Center, LLC.
Although management believes that these forward-looking statements
are based on reasonable assumptions, these assumptions are
inherently subject to significant economic, regulatory and other
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.
SOURCE MedCath Corporation