Foundation HealthCare Receives $9.3 Million For The Sale Of Its Interest In Heritage Park Surgical Hospital
Expects to also net approximately $4 million from the sale of its real estate interest in Heritage Park by year end
Jun 15, 2015, 08:00 ET
OKLAHOMA CITY, June 15, 2015 /PRNewswire/ -- Foundation HealthCare Inc. (OTCQB: FDNH), announced today the sale of its 20 percent equity position in Heritage Park Surgical Hospital for $9.3 million to Texas Health Venture Heritage Park, LLC, a joint enterprise of the Baylor Hospital System and United Surgical Partners International (USPI). Heritage Park Surgical Hospital is located in Sherman, Texas.
In addition, Foundation anticipates that by the end of the year it will also sell its share of the real estate ownership in the Hospital's main campus facility. Foundation expects to net approximately $4 million from the sale of the real estate.
"Owning a majority interest in our affiliated Hospitals is fundamental to our growth strategy," said Stanton Nelson, CEO of Foundation HealthCare. "We are proud of our successes with our physician partners at Heritage Park, but without majority ownership the Hospital did not fit our business model. We intend to use the capital from the sale to strengthen our balance sheet and further our growth strategy."
"The timing of the sale is fortunate because of the ongoing revenue growth at our majority owned hospitals which should more than offset the equity in earnings from Heritage Park's operations. As we announced on our earnings call last month and in the related press release, net patient service revenues at our majority owned hospitals for the first quarter of 2015 increased by 44% over first quarter of 2014. This strong revenue growth validates our strategy and we expect the trend to continue," said Nelson.
About Foundation HealthCare
Headquartered in Oklahoma City, OK, Foundation HealthCare owns and operates three other surgical hospitals and eight surgery centers in seven states. Foundation HealthCare's management provides expertise and focuses on the growth of each hospital by incorporating additional ancillary services in their markets. These additional service lines, such as out-patient surgery, oncology, imaging, physical therapy, hyperbarics, and sleep labs, truly make the Foundation specialty hospital environment unique.
The Company is also an industry leading ASC management and development company focused on partnering with physicians and employees to create an outstanding patient experience, while maximizing partner and shareholder value.
Important Cautions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based on the Company's current expectations, forecasts and assumptions. Forward-looking statements involve risks and uncertainties that could cause actual outcomes and results to differ materially from the Company's expectations, forecasts and assumptions. These risks and uncertainties include risks and uncertainties not in the control of the Company, including, without limitation, the risk that Company will maintain enough liquidity to execute its business plan, continue as a going concern and other risks including those enumerated and described in the Company's filings with the Securities and Exchange Commission, which filings are available on the SEC's website at www.sec.gov. Unless otherwise required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Primary contact: Grady Epperly, 405-608-1754 ([email protected])
SOURCE Foundation HealthCare
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