CHARLOTTE, N.C., Aug. 1, 2011 /PRNewswire/ -- MedCath Corporation
(Nasdaq: MDTH) and Lovelace Health System, Inc. jointly announced
today the completion of sale of substantially all the assets of
MedCath's Heart Hospital of New
Mexico to Lovelace, which is an affiliate of Ardent Health
Services, based in Nashville,
Tenn. The transaction was announced in May and was subject
to MedCath stockholder approval, regulatory approval and other
customary closing conditions listed in the Asset Purchase
Agreement. Navigant Capital Advisors provided advisory services to
MedCath related to the transaction.
Together with the sale of its equity interest in Arkansas Heart
Hospital 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.
When the Heart Hospital of New
Mexico opened in October 1999,
it became the state's first hospital dedicated to the prevention
and treatment of heart disease. It's been ranked among the top five
percent nationwide in patient experience by Health Grades, the
leading independent health care ratings organization. It's also the
state's only hospital to receive a five-star rating from Health
Grades for Treatment of Heart Attack, it's recognized as an
accredited Chest Pain Center and it's been designated by Blue Cross
Blue Shield of New Mexico as a
Blue Distinction Center for Cardiac Care.
"Heart Hospital of New Mexico
resulted from the shared vision of two talented cardiovascular
physicians groups that pioneered New
Mexico's leading heart programs," said O. Edwin French, MedCath's president and CEO.
"We are very proud of how that vision became reality, and we know
that Lovelace Health Systems will continue that legacy. We wish
them continued success."
The transaction values the Heart Hospital of New Mexico's assets at $119.0 million. The limited liability company
that currently owns Heart Hospital of New
Mexico, of which 74.8% is owned by MedCath, will retain its
net working capital. MedCath anticipates receiving approximately
$62.0 million in net proceeds from
the transaction, including its share of Heart Hospital of
New Mexico's cash, and after
collection of all accounts receivable, payment of all known
liabilities, including taxes, and repayment of inter-company debt
owed by Heart Hospital of New
Mexico to MedCath, pro-rata minority interest payments and
an allocation of additional funds to the limited liability
company's minority partners by MedCath in consideration for such
minority partners' consent to the transaction that was required
under the limited liability company's Operating Agreement as a
condition to entering into this transaction. The anticipated net
proceeds do not include any reserves for unknown or contingent
liabilities retained by Heart Hospital of New Mexico, including without limitation any
liability which may arise from the New Mexico ICD
investigation.
"The medical staff and nurses of the Heart Hospital of
New Mexico have a strong
reputation for exceptional clinical quality and high patient
satisfaction," said Ron Stern,
president and CEO of Lovelace Health System. "We will build
on that success and increase access to the Heart Hospital to more
people in Albuquerque and
New Mexico."
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