Transactions (June 2008)

Ohio provider buys MedCath hospital


By John Mugford

“If you can’t beat ‘em, buy ‘em.” That’s the strategy recently employed by Good Samaritan Hospital in Dayton, Ohio, which in May closed on the acquisition of one of its major cardiovascular competitors.

Good Samaritan, a 577-bed acute care powerhouse that’s been in business for 75 years, acquired the 47-bed Dayton Heart Hospital for $55 million. The heart hospital opened in 1999 and is near Dayton’s downtown. Good Samaritan is about 20 minutes north of the downtown, just off State Highway 49.

The seller of Dayton Heart Hospital was Charlotte, N.C.-based MedCath Corp. (NASDAQ: MDTH) and a group of physician investors. Net proceeds to MedCath are expected to be about $32 million after expenses related to the gain on the sale and the liquidation of working capital retained by the hospital partnership.

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