Dr. Chris Phan will lead Northstar's Cancer Division
HOUSTON, TX, April 27 /CNW/ - Northstar Healthcare Inc. (TSX: NHC) today
announced that it entered into an agreement to acquire certain
ownership interests in four physician owned radiation therapy cancer
treatment centers from Dr. Chris Phan, a radiation oncologist. Dr. Phan
is founder and Chief Executive Officer of Expert Oncology Network
Solutions, LLC (EONS). EONS has been instrumental in developing and
consulting with cancer centers across Texas. The acquired interests
range from thirteen to thirty-six percent with the remaining ownership
interests in the Texas based centers held by physician partners. Dr.
Phan will join Northstar as the President of a newly formed cancer
The cancer treatment centers are located in Corpus Christi, San Antonio,
west and north Houston. The centers utilize the latest technology in
stereotactic radiation therapy systems by Varian Medical Systems
(NYSE: VAR). This state of the art equipment, often found in academic
centers of excellence, provides Northstar's cancer division with a
unique differentiator. Northstar and Dr. Phan will manage the acquired
Dr. Donald Kramer, Chief Executive Officer of Northstar, stated, "We are
excited about entering the oncology field through the acquisition of
the radiation therapy centers. Dr. Phan and his team are a great
addition to Northstar's management team and bring years of experience
in the oncology field. This acquisition adds another service offering
to Northstar's physician partnering model and complements our network
of ambulatory healthcare facilities. The formation of the cancer
division with Dr. Phan's leadership serves to further build our network
of physician partners."
The U.S. radiation therapy market - estimated at $7 billion a year - is
a highly unconsolidated industry. With approximately 2,000 freestanding
or hospital-based centers offering radiation therapy, it is estimated
that no single company currently owns more than five percent of the
country's radiation centers.
Cancer is the second leading cause of death in the United States, with
1.5 million new cases expected to be diagnosed this year. Approximately
60 percent of cancer patients are treated with radiation therapy.
The purchase price for the facilities, including Northstar's portion of
assumed debt, is expected to be approximately $5.6 million. The
purchase price consideration of $2.7 million, excluding assumed debt,
consists of $1.8 million in cash, $0.4 million in convertible
promissory notes and $0.5 million in common stock of Northstar.
Seventy-seven percent of the purchase price will be paid out over the
next two years. The four cancer centers have all opened within the past
20 months with three of the centers opening within the past six months.
The acquisition is expected to be finalized in June 2011 upon the
completion of financial audits on the acquired entities, satisfactory
due diligence review by Northstar, receipt of any necessary
contractual, regulatory and governmental consents and approvals, and
the absence of any material adverse change affecting the radiation
"I look forward to working with Dr. Kramer and the Northstar management
team to develop Northstar's cancer division," stated Dr. Phan.
"Northstar offers the structure and a platform through which we can
grow this new division. With three of our four facilities less than six
months old and a pipeline of new centers, we anticipate strong growth
from the cancer division over the next twelve to twenty-four months."
Interim Chief Financial Officer Announced
Northstar also announced today that David Richardson, CFO, will be
leaving the Company to assume the position of CFO with a private equity
based healthcare company.
Mr. Thomas O. Foster, III, who currently serves as a director of
Northstar Healthcare Inc. and Chairman of the Audit Committee, will
serve as interim CFO.
"I want to thank David for his many contributions to Northstar," said
Dr. Donald Kramer. "I'm grateful for the counsel and leadership he has
provided. David was a major contributor during a pivotal time. He,
along with the other members of the management team, have established a
good financial foundation for the future."
Mr. Foster has been a Director of Northstar Healthcare Inc., since
October 2010. Mr. Foster is an attorney and has focused his practice on
multi-state and local taxation, federal and international taxation, and
tax planning for individuals and entities. Mr. Foster was licensed as a
Certified Public Accountant by the State of Texas in 1968. He obtained
his Juris Doctor degree from Baylor University School of Law in 1964
and a B.B.A degree from Baylor University in 1961. In 1965, Mr. Foster
received an L.L.M. degree in taxation from New York University.
About Northstar Healthcare Inc.
Northstar partners with physicians in the ownership and management of
ambulatory facilities and healthcare services. Northstar owns and
manages interests in three ambulatory surgery centers, two in Houston
and the third in Dallas.
This news release may contain forward-looking statements (within the
meaning of applicable securities laws) relating to business of
Northstar Healthcare Inc. (the "Company") and the environment in which
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"believe", "anticipate", "expect", "intend", "plan", "will", "may" and
other similar expressions. These statements are based on the Company's
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guarantees of future performance and involve risks and uncertainties
that are difficult to control or predict. These risks and uncertainties
are discussed in the Company's regulatory filings available on the
Company's web site at www.Northstar-Healthcare.com or at www.sedar.com. There can be no assurance that forward-looking statements will prove
to be accurate as actual outcomes and results may differ materially
from those expressed in these forward-looking statements. Readers,
therefore, should not place undue reliance on any such forward-looking
statements. Further, a forward-looking statement speaks only as of the
date on which such statement is made. The Company undertakes no
obligation to publicly update any such statement or to reflect new
information or the occurrence of future events or circumstances.
SOURCE Northstar Healthcare Inc.
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