MedCath Announces Completion of Sale of Ownership Interest in Southwest Arizona Heart and Vascular Center, LLC

CHARLOTTE, N.C., Nov. 2, 2010 /PRNewswire-FirstCall/ -- MedCath Corporation (Nasdaq: MDTH), a healthcare provider focused on high acuity services, predominantly the diagnosis and treatment of heart disease, today announced its MedCath Partners division has completed the sale of its minority ownership in Southwest Arizona Heart and Vascular Center, LLC. MedCath Partners sold its approximately 27.0 percent interest to the joint venture's physician partners for $7.0 million, effective Nov. 1.

MedCath Partners acquired its interest in the joint venture in April 2008, and along with Heart, Lung and Vascular Center – a physician-owned entity – provided cardiac catheterization lab services to Yuma Regional Medical Center. MedCath Partners will receive net proceeds equal to approximately $6.9 million, net of tax and closing costs. The transaction will result in an approximate $1.8 million pre-tax loss in MedCath's first quarter of fiscal 2011, which ends Dec. 31 2010.  

"MedCath shared a common belief with our physician partners and Yuma Regional Medical Center that our collective strengths would enhance an already successful venture," said O. Edwin French, MedCath's president and CEO. "We're proud that we were able to make that happen, and we know Southwest Arizona Heart and Vascular Center will continue to provide top quality medical care. We wish the best for our physician partners, the hospital and the community."

This marks MedCath's fourth completed transaction since forming a Strategic Options Committee in March to consider the sale either of the entire company or its assets. Since Oct. 4, MedCath has announced the completion of sales involving its interests in Arizona Heart Hospital, Avera Heart Hospital of South Dakota and Heart Hospital of Austin.

About MedCath

MedCath Corporation, headquartered in Charlotte, N.C., is a health care provider focused on high acuity services with the diagnosis and treatment of cardiovascular disease being a primary service offering.  MedCath owns an interest in and operates seven hospitals with a total of 653 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, and Texas.  In addition, MedCath and its subsidiary MedCath Partners provide services in diagnostic and therapeutic facilities in various states.

This announcement contains forward-looking statements that involve risks and uncertainties, including those relating to the estimated net proceeds MedCath expects to receive from the sale of its ownership in Southwest Arizona Heart and Vascular Center, LLC. Although management believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to significant economic, regulatory and other 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.  

SOURCE MedCath Corporation

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