CHARLOTTE, N.C., Aug. 1, 2011 /PRNewswire/ -- MedCath Corporation
(Nasdaq: MDTH) announced today the completion of the sale of its
ownership interest and management rights in Arkansas Heart Hospital
to AR-MED, LLC., which is majority owned by Dr. Bruce Murphy, a physician affiliated with Little
Rock Cardiology Clinic, P.A., and a current investor in the
Arkansas Heart Hospital. The transaction was announced in May and
was subject to MedCath stockholder approval and other customary
closing conditions listed in the Equity Purchase Agreement.
Navigant Capital Advisors provided advisory services to MedCath
related to the transaction.
Together with the sale of the majority of the assets of Heart
Hospital of New Mexico also
announced today, MedCath has completed nine transactions since
announcing in March 2010 it had
formed a Strategic Options Committee to consider the sale either of
the entire company or its assets. Since October, MedCath has
announced the completion of sales involving the following four
hospitals: Arizona Heart Hospital, Avera Heart Hospital of
South Dakota, Heart Hospital of
Austin and TexSan Heart Hospital.
In addition, MedCath's Partners division sold its minority interest
it held in Southwest Arizona Heart and Vascular, LLC in November,
and in May, it completed the sale of its ownership interest and
management agreement in Coastal Carolina Heart, as well as the sale
of the majority of its assets to DLP Healthcare, a joint venture of
LifePoint Hospitals and Duke University
Health System.
For 14 years, MedCath worked closely with the Arkansas Heart
Hospital's physician leadership, expanding the number of beds by 33
percent and helping the hospital earn several honors. Those include
a Health Grades 2011 Outstanding Patient Experience Award, and two
awards from the Arkansas Foundation for Medical Care in 2005, one
for Hospital Quality Achievement and one for Innovation in
Healthcare. In addition, a USA Today analysis of Medicare data in
2009 showed that Arkansas Heart Hospital was one of the state's
top-performers, with the lowest death rate from heart attacks of
any hospital in the state.
"We will always be proud of how after working with our physician
partners, we were able to help establish a culture that emphasizes
caring for the individual needs of patients and their families,"
said O. Edwin French, MedCath's
president and CEO. "That culture will continue with Dr. Murphy and
his team, and we wish them continued success."
Purchase terms are based on the hospital's valuation of
$73.0 million plus a percentage of
the hospital's available cash. The transaction is anticipated
to net approximately $60.0 million to
MedCath after closing costs and taxes. The net amount anticipated
to be received by MedCath includes repayment of inter-company debt
owed by Arkansas Heart Hospital to MedCath. The purchaser and Dr.
Murphy have agreed to indemnify MedCath for liabilities arising
from the pre-closing operations of the hospital, including not
limited any liabilities that may arise from the pending ICD
investigation.
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 four hospitals with a total of 366
licensed beds, located in Arizona,
California, Louisiana, and Texas.
SOURCE MedCath Corporation