MedCath to sell Dayton Heart Hospital for $55M

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MedCath, a provider of cardiovascular sciences, has entered into a definitive agreement pursuant to which Good Samaritan Hospital of Dayton, Ohio, will acquire Dayton Heart Hospital for approximately $55 million, a portion of which is allocated to customary non-competition obligations.

The transaction is expected to close on or about May 16, and is subject to customary closing conditions.

After estimated income tax related to the gain on sale, MedCath said the net proceeds are anticipated to total approximately $32.5 million. The Charlotte, N.C.-based MedCath said it will use the proceeds for general corporate purposes, including investment in other hospital projects.

Beginning with its second quarter of fiscal 2008, which ends March 31, MedCath will account for Dayton Heart Hospital as an asset held-for-sale for the current and prior reporting periods.

Dayton Heart Hospital of Ohio is a 47-bed hospital focused on providing cardiovascular care to the Dayton community. A member of the Premier Health Partners system, Good Samaritan Hospital is a 577-bed, full-service teaching facility that delivers cardiovascular, cancer and orthopedics services.