MedCath Corp. announced the asset sale of Hualapai Mountain Medical Center in Kingman, Ariz., taking another step toward dissolving the for-profit heart-hospital chain.
MedCath announces sale of Ariz. facility
Kingman (Ariz.) Regional Medical Center agreed to purchase the 70-bed hospital, and the total net proceeds for MedCath in the Hualapai transaction are estimated at $42 million, according to a MedCath news release. The deal valued the hospital's assets and about 18.6 acres of adjacent undeveloped land at $31 million. That includes retention of working capital. The sale is subject to stockholder approval, which could come at a special meeting on Sept. 22.
MedCath plans to close the hospital by Sept. 30, and KRMC will later reopen the facility in a limited and undetermined capacity based on patient demand in the area. Some staff could keep their jobs and MedCath will offer severance to those KRMC doesn't rehire.
This is MedCath's 10th transaction since March 2010 when the Charlotte, N.C., chain formed a committee that ultimately decided to sell off assets. Earlier this month the company completed sales of its stakes at the 55-bed Heart Hospital of New Mexico and the 112-bed Arkansas Heart Hospital in Little Rock, Ark. MedCath continues to own stakes in four hospitals in Arizona, California, Louisiana and Texas.
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