The Cardiovascular Care Group expanded its network with the acquisition of a majority interest in the Bakersfield Heart Hospital in Bakersfield, Calif., from MedCath Corporation.
Bakersfield Heart Hospital is a 47-bed facility located between Fresno and Los Angeles in a county that serves a market of 1.3 million people. The hospital was built in 1999 as a partnership between MedCath and a group of physicians.
The purchase price for MedCath's equity interest and secured loans is approximately $38.1 million, subject to post-closing working capital adjustments. MedCath anticipates it will receive approximately $34 million in cash from the transaction after payment of taxes and closing costs.
"We have now sold all 10 of our hospitals since announcing in March 2010 that we had formed a Strategic Options Committee to consider the sale either of the entire company or our assets," said Art Parker, MedCath's CEO. MedCath sought stockholder approval of a plan of complete liquidation and dissolution of the company in August 2011, which stockholders approved the next month.
The transaction was effective June 30, Charlotte, N.C.-based MedCath reported. At the completion of the sale, MedCath will no longer operate hospitals.
MedCath was a healthcare provider focused on high acuity services with the diagnosis and treatment of cardiovascular disease being a primary service offering. Nashville, Tenn.-based Cardiovascular Care Group is a physician-led patient-centered company that partners with cardiovascular specialists and other physicians to design and build regional care delivery systems that integrate care across the continuum of cardiovascular care.