For-profit Northstar Healthcare, Houston, has entered into an agreement to purchase minority interests in four radiation therapy cancer treatment centers in Texas for $5.6 million, including the assumption of debt, according to a news release.
Texas doctor sells stake in radiation centers
The centers, two in the Houston area and one each in Corpus Christi and San Antonio, are currently owned by Dr. Chris Phan, a radiation oncologist, who will join Northstar as president of a newly formed cancer division, according to the release. Northstar will take on ownership of between 13% and 36% of the facilities, with the balance owned by physician partners.
Excluding the assumed debt, publicly traded Northstar will pay $1.8 million in cash, $500,000 in common stock of Northstar and $400,000 in convertible promissory notes. Seventy-seven percent of the price will be paid out over the next two years, according to Northstar.
The deal is expected to close in June 2011 pending closing conditions and regulatory approvals.
Northstar also announced that David Richardson, chief financial officer, will leave to become CFO of a healthcare company and Thomas Foster III, a Northstar director, will serve as interim CFO.
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