TORONTO, Feb. 1, 2018 /CNW/ - Medical Facilities
Corporation ("Medical Facilities" or the "Corporation") (TSX: DR)
announced today that it has completed the previously announced
acquisition of seven ambulatory surgery centers. The facilities
were acquired through a joint venture formed with NueHealth LLC
("NueHealth"), 94.25 percent owned by Medical Facilities. The total
purchase price was US$46.5 million
and the Corporation's portion of the purchase price was funded by
cash and a draw on its credit facility.
Through this transaction, the joint venture has acquired
ownership interests in the following centers:
- Brookside Surgery Center (Battle
Creek, Mich.)
- Central Arkansas Surgical Center (Russellville, Ark.)
- City Place Surgery Center (Creve
Coeur, Mo.)
- Eastwind Surgical (Westerville,
Ohio)
- Miracle Hills Surgery Center (Omaha,
Neb.)
- Riverview Ambulatory Surgical Center (Kingston, Penn.)
- Two Rivers Surgery Center (Eugene,
Ore.)
The centers provide medical procedures including orthopedic
surgery, neurosurgery and pain management and combined have 26
operating/procedure rooms. In aggregate, the joint venture will own
approximately 53 percent equity interest in the centers. NueHealth
will provide day-to-day management and operations support to the
centers, including accounting, materials management, payor
contracting, benefits administration and billing and
collections.
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. 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.
About NueHealth
NueHealth, LLC, is a privately held
nationally trusted healthcare partner with more than 10,000
physicians and 25 health systems delivering approximately
$776 million of consolidated revenue
annually in 28 states. Our core business is comprehensive
outpatient surgical care. NueHealth's market development is
concentrated in four major regions, Mid-Atlantic, Florida, Texas and Mid-West. Since 1997, NueHealth has
been successfully developing joint ventures with more than 150
high-value sites of service supported by over 2500 associates,
including ASCs, MUVE™ hyper specialty joint replacement centers and
specialty surgical hospitals. NueHealth's efforts have helped
stabilize provider independence through wealth creation, ownership,
and increased referral volume while successfully guiding them
through the transition from fee for service to value based risk
contracting. NueHealth has developed the industry's most
comprehensive Ambulatory Center of Excellence platform that assists
payors, health systems and providers in delivering an appropriate
alternative to fee for service, high-cost care for fully insured
members and self-insured covered lives.
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