MedCath sheds another heart hospital

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MedCath and its physician partners have entered into a definitive agreement to sell assets of Texsan Heart Hospital to Methodist Healthcare System of San Antonio for an undisclosed amount.

Methodist is an equal partnership between San Antonio-based Methodist Healthcare Ministries and HCA, a provider with more than 160 hospitals and more than 100 surgery centers in 20 states and the U.K.

Beginning with its first quarter of fiscal 2011, which ends Dec. 31, MedCath will account for Texsan Heart Hospital as a discontinued operation for current and prior reporting periods.

The agreement marks MedCath's fifth transaction since announcing in March it had formed a strategic options committee to consider the sale either of the entire company or its assets.

In the past month, MedCath has completed sales involving its interests in Arizona Heart Hospital, Avera Heart Hospital of South Dakota, Heart Hospital of Austin and also a minority ownership of its MedCath Partners division held in Southwest Arizona Heart and Vascular.

The transaction is expected to close during MedCath's second fiscal quarter of 2011, which ends March 31, subject to regulatory approval and customary closing conditions.