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Medical Facilities Corporation Signs Letter of Intent to Acquire Physician-Owned Hospital in Indiana and Acquires Underlying Real Estate
Medical Facilities Corporation Signs Letter of Intent to Acquire Physician-Owned Hospital ...
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[{"type":"text","content":"\n\n\n\nMedical Facilities Corporation Signs Letter of Intent to Acquire Physician-Owned Hospital in Indiana and Acquires Underlying Real Estate\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntal{\nTEXT-ALIGN: LEFT\n}\n\n\n\n\n\n\nMedical Facilities Corporation Signs Letter of Intent to Acquire Physician-Owned Hospital in Indiana and Acquires Underlying Real Estate\nCanada NewsWire\nTORONTO, July 15, 2016\n\n\n\nTORONTO, July 15, 2016 /CNW/ - Medical Facilities Corporation (\"Medical Facilities\" or the \"Company\") (TSX: DR), today announced that it has entered into a letter of intent to acquire, in stages, an indirect 83 percent interest in Unity Medical and Surgical Hospital (\"Unity\"), a physician-owned medical and surgical hospital located in Mishawaka, Indiana.\n\nUnity Medical and Surgical Hospital is a 50,000 square foot, 29-bed Medicare-certified facility with four surgical and two special procedure suites focused on providing orthopedic, ophthalmology, podiatry, pain management, and spine surgery. It is one of the top performing hospitals in the U.S. with service scores in the top five percent, as determined by a national survey of patient care conducted by HCAHPS on behalf of the Centers for Medicare & Medicaid Services, released in July 2016. The letter of intent is subject to conditions, including settlement of definitive documentation and satisfactory completion of due diligence.  Subject to satisfaction of the outstanding conditions, the acquisition is expected to be completed by the end of July, 2016, and would be funded by available cash and a draw on the Company's credit facility.\n\nThe hospital's operations are 86 percent owned by Physicians ASC Management (\"PAM\"). Under the terms of the letter of intent, the Company would purchase a 72 percent interest in PAM (representing an indirect 62 percent ownership interest in the hospital) for $26.63 million, and all but four percent of the remaining ownership interest in PAM can be purchased over three years (2017, 2018 and 2019, on the annual anniversaries of the initial closing) at a price determ...