MedCath Enters Definitive Agreement To Sell Its Interest in Texsan Heart Hospital

CHARLOTTE, N.C., Nov. 8, 2010 /PRNewswire via COMTEX/ -- MedCath Corporation (Nasdaq: MDTH) announced today it has entered into a definitive agreement to sell substantially all the assets of Texsan Heart Hospital, owned by MedCath and its physician investors, to Methodist Healthcare System of San Antonio. The transaction is expected to close during MedCath's second fiscal quarter of 2011, which ends March 31, subject to regulatory approval and customary closing conditions.

Methodist Healthcare System brings together many of San Antonio's most respected health care facilities and is an equal partnership between San Antonio-based Methodist Healthcare Ministries and HCA, a leading hospital provider with more than 160 hospitals and over 100 surgery centers in 20 states and the U.K. Beginning with its first quarter of fiscal 2011, which ends Dec. 31, MedCath will account for Texsan Heart Hospital as a discontinued operation for current and prior reporting periods.

The agreement marks MedCath's fifth transaction since announcing in March it had formed a Strategic Options Committee to consider the sale either of the entire company or its assets. In the past month, MedCath has announced the completion of sales involving its interests in Arizona Heart Hospital, Avera Heart Hospital of South Dakota, Heart Hospital of Austin and also a minority ownership its MedCath Partners division held in Southwest Arizona Heart and Vascular, LLC.

Since opening in 2004, the Texsan Heart Hospital has repeatedly distinguished itself with the quality care it provides. In 2009, the hospital received an Excellence Award from HealthGrades, the leading independent health care ratings organization. It was cited for being among the leading hospitals in America by Consumers' Checkbook survey, according to the May/June 2009 issue of AARP The Magazine. In September, it became one of only about 400 facilities nationwide to be recognized by Blue Cross and Blue Shield as a Blue Distinction Center for Cardiac Care, due to its commitment to quality care, resulting in better overall outcomes for cardiac patients. And earlier this year, it was named an American Society for Metabolic and Bariatric Surgery (ASMBS) Bariatric Surgery Center of Excellence(R).

"Texsan Heart Hospital came into being as a result of the vision of local physicians who saw a way to bring world-class heart care to San Antonio and southwest Texas," said O. Edwin French, MedCath's president and CEO. "We're extremely proud of how we were able to help fulfill that vision."

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.

Parts of this announcement contain forward-looking statements that involve risks and uncertainties, including those relating to the sale of substantially all of the assets of Texsan Heart Hospital. Although MedCath's management believes that these forward-looking statements are based on reasonable assumptions, these assumptions are inherently subject to various risks, including obtaining required regulatory approvals and satisfaction of other closing conditions, that are difficult or impossible to predict accurately and, in some cases, are beyond MedCath's control. Actual results could differ materially from those projected in these forward-looking statements. MedCath assumes no 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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