HealthSouth Corp., Birmingham, Ala., said it has agreed to sell its diagnostic division for $47.5 million to the Gores Group, a private equity firm. The division includes 54 freestanding diagnostic imaging centers in 19 states and the District of Columbia.
With the agreement, HealthSouth has deals pending to sell all three of its ambulatory divisions and leave the company focused on inpatient rehabilitation facilities. The other deals include: an agreement to sell the companys ambulatory surgery division to Texas Pacific Group, a private equity firm, for $945 million; and an agreement to sell its outpatient rehabilitation division for $245 million to Select Medical Corp., Mechanicsburg, Pa.
HealthSouth said that the proceeds from all three deals will be used to pay down long-term debt. As of Dec. 31, 2006, HealthSouth had long-term debt obligations of $3.37 billion, according to a securities filing. HealthSouths core division includes 93 inpatient rehabilitation hospitals and 10 long-term acute-care hospitals. -- by Vince Galloro