PLANO, Texas, Sept. 6 /PRNewswire/ -- LifeCare Holdings, Inc. announced that as of Friday, September 2nd, all patients and staff had been evacuated from its three hospitals located in the New Orleans area as a result of Hurricane Katrina.
The three hospitals operated in New Orleans are hospitals within hospitals that are leased from two other acute care providers. The 37 licensed bed hospital located in Chalmette was evacuated on August 27th in anticipation of the hurricane and likely suffered substantial damage from the hurricane. The Chalmette hospital is a single story facility leased from Universal Health Services, Inc. The remaining two hospitals are located on the upper floors of facilities that suffered an undetermined amount of property damage. One of these facilities has 82 licensed beds and is located within Memorial Medical Center. The second facility has 31 licensed beds and is located within Kenner Regional Medical Center. Tenet Healthcare Corporation owns both Memorial Medical Center and Kenner Regional Medical Center. It is too early to determine how long it will take for the host facilities to repair the damage incurred.
At this time the company cannot estimate the financial impact to its operations resulting from the evacuation and property damage caused by the hurricane. The three facilities that have been evacuated represent approximately 15% of the company's licensed beds and contributed approximately 12.5% of consolidated revenue for the six months ended June 30, 2005. It is too early to determine what, if any, proceeds will be received from the company's insurance coverages. During the coming weeks, the company will continue to further assess the financial and operational impact of the losses resulting from the hurricane.
"During the past week we have been focused on assuring the safety of our patients and staff," stated W. Earl Reed III, Chairman and Chief Executive Officer. "We are doing everything we can to assist our patients, employees and their families. Several assistance programs have been established for our employees and we are committed to helping alleviate their suffering as a result of this tragedy."
LifeCare Holdings is the third largest operator of long-term acute care hospitals in the United States.
LifeCare Holdings, Inc.CONTACT: Jim Shelton of LifeCare Holdings, Inc., +1-469-241-2113
