Will become department of Sioux Falls
Specialty Hospital
TORONTO, Sept. 28, 2016 /CNW/ - Medical Facilities
Corporation ("Medical Facilities" or the "Corporation") (TSX: DR)
announced today that the Corporation's Sioux Falls Specialty
Hospital ("SFSH") has entered into a definitive agreement to
acquire Prairie States Surgical Center, L.L.C., ("PSSC") which owns
and operates Prairie States Surgical Center, an ambulatory surgical
center located in Sioux Falls, South
Dakota that specializes in orthopedic procedures. PSSC
generated about US$8 million in net
revenue in 2015 and will be merged into the operations of SFSH.
"Prairie States Surgical Center is a great addition, a clear
demonstration of the organic growth opportunities within our
current markets and will increase our profile in the Sioux Falls community," said Britt T. Reynolds, CEO of Medical Facilities.
"As well, the close proximity of PSSC to SFSH enables operational
adjustments that we anticipate will generate near-term synergies.
We expect this acquisition to be immediately accretive."
The facility is being acquired for a purchase price of
approximately US$19.95 million,
subject to customary adjustments, to be paid over a period of five
years. The acquisition is scheduled to be completed on October 3, 2016.
"PPSC provides the highest quality surgical and patient recovery
care and we are excited to be adding the facilities and welcoming
its physicians and patient care teams to the Sioux Falls family," added Dr. Blake Curd, CEO of SFSH. "Patients can be
assured that they will continue to receive the same sensitive and
friendly care in the premier medical facilities in the state."
About Medical Facilities
Medical Facilities owns controlling interests in five specialty
surgical hospitals located in Arkansas, Indiana, Oklahoma and South
Dakota, as well as an ambulatory surgery center in
California. The specialty
hospitals perform scheduled surgical, imaging, diagnostic and other
procedures, including primary and urgent care, and derive their
revenue from the fees charged for the use of their facilities. The
ambulatory surgery center specializes in outpatient surgical
procedures, with patient stays of less than 24 hours. In addition,
Medical Facilities owns controlling interest in a diversified
healthcare service company located in Oklahoma City that provides third-party
business solutions to healthcare entities such as physician
practices, facilities, and insurance companies. Medical Facilities
is structured so that a majority of its free cash flow from
operations is distributed to the holders of its common shares in
the form of dividends. For more information, please visit
www.medicalfacilitiescorp.ca.
Caution concerning forward-looking
statements
Statements made in this news release, other
than those concerning historical financial information, may be
forward-looking and therefore subject to various risks and
uncertainties. Some forward-looking statements may be
identified by words like "may", "will", "anticipate", "estimate",
"expect", "intend", or "continue" or the negative thereof or
similar variations. Certain material factors or assumptions are
applied in making forward-looking statements and actual results may
differ materially from those expressed or implied in such
statements. Factors that could cause results to vary include
those identified in Medical Facilities' filings with Canadian
securities regulatory authorities such as legislative or regulatory
developments, intensifying competition, technological change and
general economic conditions. All forward-looking statements
presented herein should be considered in conjunction with such
filings. Medical Facilities does not undertake to update any
forward-looking statements; such statements speak only as of the
date made.
SOURCE Medical Facilities Corporation