Hospital operator MedCath (NASDAQ:MDTH) is closing and selling an Arizona hospital in a deal that will net MedCath $42 million.
MedCath, a Charlotte, North Carolina-based company, will sell the Hualapai Mountain Medical Center in Kingman, Arizona to the Kingman Regional Medical Center (KRMC), a 235-bed, nonprofit hospital in Kingman, Arizona. MedCath plans to close its facility on Sept. 30. KRMC is expected to reopen the medical center in a limited capacity, rehiring some of the facility’s employees. Under MedCath, the 70-bed acute care center employs nearly 100 physicians.
The sale of the Hualapai Mountain Medical Center will be MedCath’s 10th transaction since announcing in March 2010 it was considering a sale of either the entire company or its assets. The company, which operates hospitals specializing in cardiac care, has been losing money since fiscal 2008. In May, MedCath disclosed that it would dissolve the company and distribute its assets.
MedCath no longer has any North Carolina hospital assets having sold off its last remaining piece in May — a stake in Wilmington, North Carolina catheterization laboratory services provider Coastal Carolina Heart. MedCath has also sold assets in Arkansas, New Mexico, South Dakota and Texas.
The sale of Hualapai Mountain Medical Center is subject to approval by MedCath shareholders. A special stockholders meeting is scheduled for Sept. 22. The transaction is expected to be completed by the end of September.
