MDTH Medcath Corp. (MM)

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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