CHARLOTTE, N.C., Nov. 8, 2010 /PRNewswire-FirstCall/ -- MedCath
Corporation (Nasdaq: MDTH) announced today it has entered into a
definitive agreement to sell substantially all the assets of Texsan
Heart Hospital, owned by MedCath and its physician investors, to
Methodist Healthcare System of San
Antonio. The transaction is expected to close during
MedCath's second fiscal quarter of 2011, which ends March 31, subject to regulatory approval and
customary closing conditions.
Methodist Healthcare System brings together many of San Antonio's most respected health care
facilities and is an equal partnership between San Antonio-based Methodist Healthcare
Ministries and HCA, a leading hospital provider with more than 160
hospitals and over 100 surgery centers in 20 states and the U.K.
Beginning with its first quarter of fiscal 2011, which ends
Dec. 31, MedCath will account for
Texsan Heart Hospital as a discontinued operation for current and
prior reporting periods.
The agreement marks MedCath's fifth transaction since announcing
in March it had formed a Strategic Options Committee to consider
the sale either of the entire company or its assets. In the past
month, MedCath has announced the completion of sales involving its
interests in Arizona Heart Hospital, Avera Heart Hospital of
South Dakota, Heart Hospital of
Austin and also a minority
ownership its MedCath Partners division held in Southwest Arizona
Heart and Vascular, LLC.
Since opening in 2004, the Texsan Heart Hospital has repeatedly
distinguished itself with the quality care it provides. In 2009,
the hospital received an Excellence Award from HealthGrades, the
leading independent health care ratings organization. It was cited
for being among the leading hospitals in America by Consumers'
Checkbook survey, according to the May/June
2009 issue of AARP The Magazine. In September, it became one
of only about 400 facilities nationwide to be recognized by Blue
Cross and Blue Shield as a Blue Distinction Center for Cardiac
Care, due to its commitment to quality care, resulting in better
overall outcomes for cardiac patients. And earlier this year, it
was named an American Society for Metabolic and Bariatric Surgery
(ASMBS) Bariatric Surgery Center of Excellence®.
"Texsan Heart Hospital came into being as a result of the vision
of local physicians who saw a way to bring world-class heart care
to San Antonio and southwest
Texas," said O. Edwin French, MedCath's president and CEO.
"We're extremely proud of how we were able to help fulfill that
vision."
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.
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 Texsan Heart
Hospital. 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