CHARLOTTE, N.C., Oct. 2 /PRNewswire-FirstCall/ -- MedCath Corporation and Benefis Healthcare of Great Falls, Mont., today announced their plans to end their strategic alliance. The alliance, announced in June 2005, was entered into with the intention of the two companies jointly working to evaluate the potential to expand and grow Benefis' cardiovascular services through an equity arrangement. The companies announced the alliance will terminate on or about Dec. 31.
"When we entered into this agreement more than a year ago, we both understood that this was a complex arrangement that had many moving parts. In the end, some of these caused both of us to conclude that converting the management agreement to an equity partnership did not fit either of our strategic ambitions," says Ed French, MedCath's president and chief executive officer. "We appreciate the leadership at Benefis for originally working with us to learn if we could structure something that might have involved an equity infusion. We have mutually agreed to not continue the exploration, and we do so on good terms."
"Strategically, we have determined that it is in our best interest to pursue our market objectives independently," says John Goodnow, President/CEO, Benefis Healthcare "We wish MedCath only the best as they pursue their development goals and strategies. Benefis remains as committed as ever to continuing to grow and develop our cardiovascular services to best meet the expanding needs of our communities."
Under the strategic alliance, MedCath has been managing Benefis' cardiovascular services and working with Benefis on the design and initial development stages of a new patient tower that will include four new floors dedicated entirely to comprehensive, state-of-the-art heart care. The original concept included an opportunity for MedCath to invest equity into the physical plant and operations.
Benefis Healthcare, one of the Northwest's leading healthcare providers, is a faith based, mission-driven, locally controlled and governed community/regional Health System, which includes the state's largest acute care hospital.
MedCath Corporation, headquartered in Charlotte, N.C., is a healthcare provider focused on the diagnosis and treatment of cardiovascular disease. MedCath focuses on serving the unique needs of patients suffering from cardiovascular disease. MedCath currently owns interests in and operates eleven hospitals with a total of 667 licensed beds, located in Arizona, Arkansas, California, Louisiana, New Mexico, Ohio, South Dakota, and Texas. In addition to its hospitals, MedCath provides cardiovascular care services in diagnostic and therapeutic facilities located in various states.
