MedCath Corporation Announces New Relationship in Wilmington, N.C.

CHARLOTTE, N.C., June 11 /PRNewswire-FirstCall/ -- MedCath Corporation announced today that its MedCath Partners Division, formerly known as MedCath Diagnostics, has entered into a new strategic relationship with cardiologists and a regional medical center in Wilmington, N.C.

New Hanover Regional Medical Center, a 769-bed tertiary hospital in Wilmington, N.C., will become an owner in a joint venture previously formed by MedCath Partners and local physicians. The joint venture will be significantly expanded to enhance the services provided to patients suffering from cardiovascular disease in eastern North Carolina. The joint venture will own and operate the existing Wilmington Heart Center, an outpatient cardiac catheterization laboratory facility, and will also provide management services to New Hanover's inpatient catheterization laboratories. The majority of the venture will be owned by New Hanover, and the balance will be owned by MedCath Partners and local physicians. The expanded venture will be called Coastal Carolina Heart, LLC.

"We look forward to partnering with these excellent local physicians and MedCath, who share our commitment to improving the quality of care in cardiovascular services to this region," said Jack Barto, New Hanover's President and Chief Executive Officer.

"For five years Wilmington Heart Center has provided excellent care to patients throughout this region," said Dr. Henry Patel, the center's medical director. "Our new partnership gives us an opportunity to offer our services to a broader group while operating more efficiently."

Coastal Carolina, through its relationships with MedCath, local physicians, and New Hanover, will operate or manage a total of eight cardiac catheterization laboratories, including one mobile cath lab.

MedCath will provide its quality initiatives and operating experience. In addition, MedCath will provide marketing initiatives to support the expansion of high quality cardiovascular services into the rapidly expanding areas outside of Wilmington. The joint venture is anticipated to commence operations on July 1.

MedCath anticipates that the venture will add approximately $0.03 in earnings per diluted share annually.

"Through this physician and community hospital partnership, we believe that we can have a direct role in improving the quality of cardiovascular care provided to people of eastern North Carolina," said Ed French, MedCath's President and Chief Executive Officer. "We also believe that we will be able to work together to identify and implement specific strategies for growing cardiovascular market share in the region. We believe that MedCath Partners, LLC is uniquely positioned to assist community hospitals in developing cath lab partnerships with their cardiologists."

MedCath Corporation, headquartered in Charlotte, N.C., is a healthcare provider focused on high acuity services with the diagnosis and treatment of cardiovascular disease being a primary service offering. MedCath owns interests in and operates eleven hospitals with a total of 667 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota, and Texas. In addition, MedCath and its subsidiary MedCath Partners manage the cardiovascular program at various hospitals and provide services in diagnostic and therapeutic facilities in various states.

Parts of this announcement contain forward-looking statements that involve risks and uncertainties. Although management believes that these forward- looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant economic, regulatory and competitive uncertainties and contingencies that are difficult or impossible to predict accurately and are beyond our control. Actual results could differ materially from those projected in these forward-looking statements. We do not assume any obligation to update these statements in a news release or otherwise should material facts or circumstances change in ways that would affect their accuracy.

These various risks and uncertainties are described in detail in "Risk Factors" in MedCath's Registration Statement on Form S-3/A filed with the Securities and Exchange Commission on March 29, 2007. A copy of this registration statement, including exhibits, is available on the internet site of the Securities and Exchange Commission at http://www.sec.gov.

MedCath Corporation

CONTACT: O. Edwin French, President & Chief Executive Officer, or ThomasK. Hearn, CEO, MedCath Partners, +1-704-708-6600

Back to news