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.
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
Ellis Metz, Media Relations Counsel, Jarrard Phillips Cate & Hancock, 615-254-0575, firstname.lastname@example.org; Craig MacPhail, Investor Relations, NATIONAL Equicom, (416) 586-1938, email@example.com