LCI Holdco Announces Interim Management Agreement With Vibra for Complex Care Hospital of Idaho Agreement Precedes Anticipated Sale of Boise Hospital to Vibra Healthcare
PLANO, Texas, March 27, 2013 /PRNewswire/ -- LCI Holdco, LLC, (the Company), parent company of LifeCare Holdings Inc., today announced that its wholly-owned subsidiary, Complex Care Hospital of Idaho ("CCHI"), has entered into an Interim Management Agreement with Vibra Hospital of Boise, LLC, an affiliate of Vibra Healthcare, LLC ("Vibra"), an operator of Long Term Acute Care (LTAC) hospitals and inpatient rehabilitation hospitals in markets across the country. Under the Interim Management Agreement, Vibra will assume day-to-day operations of the Boise hospital upon approval of the motion filed today; a hearing on the motion is scheduled for Tuesday, April 2. LifeCare will continue its responsibilities for billing, collections and payment of employees under the management agreement.
LifeCare also today executed an agreement for Vibra's acquisition of substantially all of the assets of CCHI and the continued employment of CCHI's employees. The proposed sale is subject to terms set forth in the agreement including customary conditions such as Bankruptcy Court and regulatory approval.
As previously announced, LifeCare is also proceeding with the sale of its other 26 hospitals to Hospital Acquisition, LLC, an acquisition vehicle formed by LifeCare's senior secured lenders. A hearing on this sale motion is scheduled for Tuesday, April 2 as well.
These transactions will allow LifeCare to dramatically improve its debt structure and enhance its ability to pursue strategic growth opportunities. Relationships with referring hospitals and physicians in the communities Lifecare continues to serve will continue as normal, as does the Company's commitment to providing compassionate, high quality care to patients recovering from catastrophic illness or injury.
"I want to express my appreciation to the employees and physicians of Complex Care Hospital of Idaho for their compassionate, high quality care of our patients, and I'm pleased we were able to negotiate an agreement with Vibra Healthcare that will allow them to continue to provide this care," said LifeCare Holdings Chairman and Chief Executive Officer Phillip B. Douglas. "Over the next few weeks, we will work diligently with Vibra to ensure a seamless transition for patients and families."
Information about the Company's Chapter 11 cases, including access to court documents, can be obtained in the News section of the Company's website at www.Lifecare-Hospitals.com.
About LifeCare Holdings, Inc.
LifeCare, based in Plano, Texas, currently operates 27 long term acute care hospitals located in ten states. Long-term acute care hospitals specialize in the treatment of medically complex patients who typically require extended hospitalization. For more information on LifeCare, visit our website at www.lifecare-hospitals.com.
This press release includes forward-looking statements regarding, among other items, operations, proposed regulations and their possible effect on the Company's results. Such statements are subject to a number of uncertainties and risks that could significantly affect current plans. Furthermore, actual results may differ materially from those experienced or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, risks relating to operating in a regulated environment, implementing our business plan, maintaining relationships with physicians in our markets, availability of sufficient nurses and therapists, competition, retaining key management, ability to service our debt requirements, litigation matters and availability of insurance. Many of the factors that will determine the Company's future results are beyond the ability of management to control or predict. As a result, you should not place undue reliance on forward-looking statements, which reflect management's views only as the date hereof. The Company undertakes no obligation to revise or update any forward-looking statement, or to make any other forward-looking statements whether as a result of new information, future events or otherwise.
SOURCE LCI Holdco, LLC