TORONTO, Jan. 14, 2016 /CNW/ - Medical Facilities Corporation ("Medical Facilities" or the "Company") (TSX: DR), announced today the Company has acquired a 51% controlling interest in Integrated Medical Delivery, L.L.C. ("IMD") for a cash purchase price of US$1.75 million.
IMD is a diversified healthcare service company located in Oklahoma City that provides third-party business solutions to healthcare entities such as physicians, facilities, and insurance companies. This acquisition provides Medical Facilities with a platform to enhance services to its facilities and future acquisitions.
"I am very pleased to announce the addition of this accretive asset to our healthcare focussed portfolio. As we continue to grow our business, it is our intention to execute on healthcare opportunities that naturally complement the strategic direction and vision of our Company," said Seymour Temkin, interim CEO of Medical Facilities. "IMD's commitment to provide effective and efficient delivery of business services to its healthcare clients is a natural enhancement and diversification to our current offerings."
"We are very excited by this strategic partnership with Medical Facilities as it provides us with significant growth opportunities," said Debra Z. Nussbaum, Chief Operating Officer of IMD. "By leveraging Medical Facilities' strong brand recognition and reputation of providing high-quality patient care in the Midwest, we look forward to the opportunities for further expansion of our business."
Medical Facilities continues to review and assess opportunities, internally and externally, that are accretive and a meaningful deployment of capital.
About Medical Facilities
Medical Facilities owns controlling interests in four specialty surgical hospitals located in Arkansas, 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 urgent and primary 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. 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.
About Integrated Medical Delivery
IMD provides outsourced business solutions to healthcare entities in a centralized off-site location. Based in Oklahoma, IMD is a diversified healthcare service company that looks to support healthcare entities in providing effective and efficient delivery of business office services through networks and centralized administrative support services. For more information, please visit www.imdelivery.com.
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: Michael Salter, Chief Financial Officer, Medical Facilities Corporation, 416.848.7380 or 1.877.402.7162, [email protected]; Lawrence Chamberlain, Investor Relations, NATIONAL Equicom, 416.848.1457 or 1.800.385.5451, [email protected]