Struggling hospital operator MedCath (NASDAQ:MDTH) has completed the $192 million sales of hospitals in Arkansas and New Mexico as the company continues to wind down operations.
Charlotte, North Carolina-based MedCath announced in May plans to sell its ownership in Arkansas Heart Hospital and Heart Hospital of New Mexico. MedCath has now closed those deals. The company’s 70.3 percent stake in Arkansas Heart Hospital in Little Rock, Arkansas was sold for $73 million to AR-MED, a limited liability corporation and investor in the hospital. MedCath expects to net approximately $60 million after closing costs and taxes.
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In a separate deal, MedCath sold Heart Hospital of New Mexico to Lovelace for $119 million. Lovelace is an affiliate of Nashville, Tennessee-based Ardent Health Services. MedCath expects to net approximately $62 million from that sale.
With the Arkansas and New Mexico hospitals now sold, MedCath has completed nine transactions since the company formed a committee in March 2010 to consider the sale of the company or its assets. MedCath’s business model was to operate specialty hospitals that focus on cardiac care. But financial statements show that the company has been losing money since 2008 and in fiscal 2010 the company reported a net loss of $48.3 million.
In May, shortly after announcing plans to sell the Arkansas and New Mexico hospitals, the company said it would dissolve and sell off all of its remaining assets. MedCath no longer operates or provides services to hospitals in North Carolina. It sold its last remaining North Carolina hospital asset in May when New Hanover Regional Medical Center in Wilmington purchased MedCath’s stake in Coastal Carolina Heart, a provider of catheterization laboratory services.
MedCath’s remaining hospital assets are four hospitals with a total of 366 licensed beds located in Arizona, California, Louisiana and Texas. The company does not expect to file a certificate of dissolution until either the sale of all or most of its remaining assets receives approval from MedCath’s board of directors and shareholders.