Will become department of Sioux Falls Specialty Hospital
TORONTO, Sept. 28, 2016 /CNW/ - Medical Facilities Corporation ("Medical Facilities" or the "Corporation") (TSX: DR) announced today that the Corporation's Sioux Falls Specialty Hospital ("SFSH") has entered into a definitive agreement to acquire Prairie States Surgical Center, L.L.C., ("PSSC") which owns and operates Prairie States Surgical Center, an ambulatory surgical center located in Sioux Falls, South Dakota that specializes in orthopedic procedures. PSSC generated about US$8 million in net revenue in 2015 and will be merged into the operations of SFSH.
"Prairie States Surgical Center is a great addition, a clear demonstration of the organic growth opportunities within our current markets and will increase our profile in the Sioux Falls community," said Britt T. Reynolds, CEO of Medical Facilities. "As well, the close proximity of PSSC to SFSH enables operational adjustments that we anticipate will generate near-term synergies. We expect this acquisition to be immediately accretive."
The facility is being acquired for a purchase price of approximately US$19.95 million, subject to customary adjustments, to be paid over a period of five years. The acquisition is scheduled to be completed on October 3, 2016.
"PPSC provides the highest quality surgical and patient recovery care and we are excited to be adding the facilities and welcoming its physicians and patient care teams to the Sioux Falls family," added Dr. Blake Curd, CEO of SFSH. "Patients can be assured that they will continue to receive the same sensitive and friendly care in the premier medical facilities in the state."
About Medical Facilities
Medical Facilities owns controlling interests in five specialty surgical hospitals located in Arkansas, Indiana, Oklahoma and South Dakota, as well as an ambulatory surgery center in California. The specialty hospitals perform scheduled surgical, imaging, diagnostic and other procedures, including primary and urgent care, and derive their revenue from the fees charged for the use of their facilities. The ambulatory surgery center specializes in outpatient surgical procedures, with patient stays of less than 24 hours. In addition, Medical Facilities owns controlling interest in a diversified healthcare service company located in Oklahoma City that provides third-party business solutions to healthcare entities such as physician practices, facilities, and insurance companies. Medical Facilities is structured so that a majority of its free cash flow from operations is distributed to the holders of its common shares in the form of dividends. For more information, please visit www.medicalfacilitiescorp.ca.
Caution concerning forward-looking statements
Statements made in this news release, other than those concerning historical financial information, may be forward-looking and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words like "may", "will", "anticipate", "estimate", "expect", "intend", or "continue" or the negative thereof or similar variations. Certain material factors or assumptions are applied in making forward-looking statements and actual results may differ materially from those expressed or implied in such statements. Factors that could cause results to vary include those identified in Medical Facilities' filings with Canadian securities regulatory authorities such as legislative or regulatory developments, intensifying competition, technological change and general economic conditions. All forward-looking statements presented herein should be considered in conjunction with such filings. Medical Facilities does not undertake to update any forward-looking statements; such statements speak only as of the date made.
SOURCE Medical Facilities Corporation
For further information: Britt T. Reynolds, Chief Executive Officer, Medical Facilities Corporation, 615.732.6052, [email protected]; Craig MacPhail, Investor Relations, NATIONAL Equicom, 416.586.1938, [email protected]