CHARLOTTE, N.C., April 2, 2008 /PRNewswire-FirstCall/ -- MedCath Corporation announced today that MedCath Partners, LLC has acquired a 27.4 percent interest in a joint venture known as Southwest Arizona Heart and Vascular Center, LLC. The joint venture provides cardiac catheterization lab services to Yuma Regional Medical Center (the “Hospital”) in Yuma, Arizona under a Management and Service Agreement with the Hospital.
The joint venture will be owned by MedCath and Heart, Lung and Vascular Center of Yuma, Inc., a physician owned entity. The facility is located on the campus of Yuma Regional Medical Center, about 180 miles southwest of Phoenix.
As part of the agreement, MedCath Partners, LLC will assume management of the joint venture. MedCath will also work with the physicians and hospital to add additional capacity to the facility as well as work to add additional services to the outlying community.
“We are very pleased to announce this new partnership with Heart, Lung and Vascular Center of Yuma, Inc.,” said Ed French, MedCath’s President and Chief Executive Officer. “The top-quality medical staff and hospital and MedCath have a common belief that our collective strengths will add to an already- successful venture. This venture is the fourth added since last summer, confirming our belief that MedCath Partners is a key element in our strategic growth plan for MedCath.”
“We are excited about the launch of this partnership with MedCath,” said Dr. Khidir Osman with Heart, Lung and Vascular Center of Yuma, Inc. “MedCath clearly shares our commitment to deliver superior cardiovascular services to the Hospital and this region and bring our care to a growing number of patients.”
MedCath acquired its 27.4 percent interest for $8.5 million and anticipates that the joint venture will add approximately $0.05 in diluted earnings per share annually.
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 ten hospitals with a total of 663 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota, and Texas. In addition, MedCath and its subsidiary MedCath Partners 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 Form 10-K filed with the Securities and Exchange Commission on December 14, 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 .
CONTACT: O. Edwin French, President & Chief Executive Officer, +1-704-
708-6600; or Art Parker, Interim Chief Financial Officer, +1-704-708-6600,
both of MedCath Corporation
Web site: http://www.medcath.com/
