Hospitals

MedCath sells Louisiana hospital to new Tennessee cardiac group

Cardiac care hospital operator MedCath (NASDAQ:MDTH) has sold the New Orleans-area Louisiana Medical Center and Heart Hospital to a Tennesee group as the Charlotte, North Carolina company continues to wind down its operations. Cardiovascular Care Group‘s acquisition of MedCath’s Louisiana hospital is the firm’s first. Nashville, Tennessee-based CCG plans to build a national network of […]

Cardiac care hospital operator MedCath (NASDAQ:MDTH) has sold the New Orleans-area Louisiana Medical Center and Heart Hospital to a Tennesee group as the Charlotte, North Carolina company continues to wind down its operations.

Cardiovascular Care Group‘s acquisition of MedCath’s Louisiana hospital is the firm’s first. Nashville, Tennessee-based CCG plans to build a national network of cardiovascular care facilities. Dr. Harry Jacobson, CCG’s chairman, said that the 137-bed Louisiana Medical Center and Heart Hospital will continue to treat those who are at risk for or who have already developed cardiovascular disease. The hospital serves three Louisiana parishes and southern Mississippi counties. CCG plans “significant capital investments” to upgrade the facilities clinical and IT systems.

The sale was closed on September 30. MedCath expects to net approximately $33 million from the sale after closing costs and including tax benefits related to the sale.

MedCath also announced it has completed its sale of all of the assets of Hualapai Mountain Medical Center in Kingman, Arizona effective September 30. That sale agreement was announced in August and was subject to shareholder approval, which was granted on September 22. That deal net MedCath about $42 million.

MedCath is in the midst of dissolving itself as a company. The company has been losing money since 2008. Since the hospital operator last year formed a strategic committee to consider a sale of the company or its assets, the company has completed 11 transactions selling facilities or stakes in facilities throughout the country. MedCath disclosed in May that it was preparing to dissolve as a company, a process that would include the sale of all of its remaining assets with a distribution to be paid to shareholders.

With the sale of the Louisiana and Arizona hospitals, MedCath is now down to two hospitals. The California and Texas facilities have a total of 159 licensed beds.