TORONTO and HOUSTON, Nov. 24 /CNW/ - Northstar Healthcare Inc. (TSX:NHC) today announced that the Company has reached a settlement agreement with the physician partners at the Kirby Partnership relating to past accounts receivable collection claims. Under the terms of the settlement, the physician partners will advance approximately $1.0 million, the majority of which is to be spent on marketing initiatives at the Kirby Center over the next two years. The Company and the physicians will work together to create a marketing council, designed to support Northstar in effectively implementing this program, as majority partner and manager of Kirby.
"This settlement represents another step towards the establishment of stable business operations for the Company," said Steve Linehan, CEO of Northstar. "Since coming to Northstar earlier this year, my focus has been on working with our management team and board of directors to institute a solid platform for future operations. I'm pleased to announce another milestone today."
As disclosed in Northstar's public filings, the claims related to the recoupment of funds from the Kirby physicians' escrow accounts, relating to the difference between the reported accounts receivable and the actual collections for certain pre-IPO periods.
About Northstar Healthcare Inc.
Northstar owns and/or manages ambulatory surgery centres in the United States, focusing initially on Houston and other metropolitan areas in Texas. The Company currently holds interests in two ambulatory surgery centres in Houston - a 70% partnership interest in The Palladium for Surgery - Houston and a 60% partnership interest in Medical Ambulatory Surgical Suites.
Northstar was founded and sponsored by Donald Kramer, M.D. and Stewart A. Feldman. Mr. Feldman also served as the co-principal and Chairman and Chief Executive Officer of Healthcare Ventures, Ltd., which sponsored Northstar, with Dr. Kramer serving as its President.
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 it operates. Forward-looking statements are identified by words such as "believe", "anticipate", "expect", "intend", "plan", "will", "may" and other similar expressions. These statements are based on the Company's expectations, estimates, forecasts and projections. They are not 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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