MedCath Completes Divestiture of The Heart Hospital of Milwaukee
December 02 2004 - 4:30PM
PR Newswire (US)
MedCath Completes Divestiture of The Heart Hospital of Milwaukee
CHARLOTTE, N.C., Dec. 2 /PRNewswire-FirstCall/ -- MedCath
Corporation (NASDAQ:MDTH) announced today the completion of
divestiture of the assets of The Heart Hospital of Milwaukee to
Columbia St. Mary's, a Milwaukee-area hospital system. MedCath had
previously announced the signing of a definitive agreement between
The Heart Hospital of Milwaukee and Columbia St. Mary's on November
8, 2004. The Heart Hospital of Milwaukee, which was jointly owned
by a subsidiary of MedCath and local physicians, included 32
inpatient beds, three operating suites and three cardiac
catheterization laboratories. Pursuant to terms of the transaction,
the hospital ceased operations prior to closing of the divestiture.
Terms of the transaction included a purchase price of $42.5
million, excluding accounts receivable and certain computer
equipment that the hospital partnership will retain. Transaction
proceeds will be used by the hospital partnership to pay secured
debt, transaction costs and hospital operating expenses, which
total approximately $39.0 million. MedCath anticipates that the
remaining proceeds from the divestiture, combined with proceeds
from the liquidation of the assets retained by the partnership,
will be used to satisfy certain liabilities of the partnership.
MedCath Corporation, headquartered in Charlotte, N.C., develops,
owns and operates hospitals in partnership with physicians, most of
whom are cardiologists and cardiovascular surgeons. While each of
its hospitals is licensed as a general acute care hospital, MedCath
focuses on serving the unique needs of patients suffering from
cardiovascular disease. Together with its physician partners who
own equity interests in them, MedCath owns and operates 12
hospitals with a total of 727 licensed beds, located in Arizona,
Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota and
Texas. In addition to its hospitals, MedCath provides
cardiovascular care services in diagnostic and therapeutic
facilities located in various states and through mobile cardiac
catheterization laboratories. MedCath also provides consulting and
management services tailored to cardiologists and cardiovascular
surgeons. DATASOURCE: MedCath Corporation CONTACT: John Casey,
Chairman & Chief Executive Officer, +1-704-708-6600, or James
Harris, Chief Financial Officer, +1-704-708-6600, both of MedCath
Corporation
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