Message #4 From:
NewsBot Date: September 7, 2005 01:00:00 AM
PHLH News Pacer Health Corporation Completes Acquisition of Minnie G. Boswell Memorial Hospital; Hospital Projected to Add $8 Million to Pacer Health Revenue over the Next 12 Months
MIAMI--(BUSINESS WIRE)--Sept. 7, 2005--Pacer Health Corporation (OTCBB:PHLH), a Miami-based owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities, announced today that it has finalized its acquisition of Minnie G. Boswell Memorial Hospital, a non-urban healthcare facility that Pacer Health has managed and operated since solidifying an agreement to purchase it on June 22, 2004. The announcement follows a favorable opinion of the sale issued recently by the Georgia State Attorney's office, effectively paving the way for the completion of this purchase.
"This acquisition is an achievement for our company and further validation of the effectiveness of the Pacer Health model," said Rainier Gonzalez, chairman and CEO of Pacer Health. "Pacer Health now operates a total of five facilities in Georgia and Louisiana with annual revenues of approximately $16 million over the next year; and Minnie G. Boswell is our second turnaround success story. We are currently reviewing other properties for inclusion in the Pacer Health portfolio and trust that this acquisition will present additional leverage in those future negotiations."
An accredited JCAHO (Joint Commission on Accreditation of Health Care Organizations) facility, Minnie G. Boswell is comprised of a 25-bed acute care hospital and a 29-bed skilled nursing facility primarily serving the residents of Greensboro, Georgia. The hospital's current facilities are located in Greensboro and were constructed in 1949. Though Pacer Health has committed funds towards improving the property, the structure itself remains outdated, and Pacer Health intends to construct a replacement facility for Minnie G. Boswell within the next three years.
By building a newer facility in a more central location, Pacer Health intends to retain a vast majority of the hospital's traditional patients, 85 percent of whom are Medicare or Medicaid recipients, while attracting many of the county's retired residents living in the vicinity of nearby Lake Oconee. The new facility will be closer to the center of the county, adjacent to a major thoroughfare, and only about one-and-a-half miles outside of Greensboro. The new location is within three-and-a-half miles of the existing hospital and is located on the soon-to-be-paved Meadowcrest Road, just east of Highway 44 and facing I-20.
Pacer Health specializes in the operation of medical facilities in non-urban areas with smaller populations and fewer healthcare operators. The company plans to expand its business over the next several years, largely through the acquisition of medical facilities including financially distressed facilities that would require a restructure of their operations to ensure financial viability, and the consolidation of these properties under the Pacer Health brand.
About Pacer Health Corporation
Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers, and psychiatric care facilities, primarily serving the growing senior citizen population and non-urban areas throughout the Southeast. Please visit http://www.pacerhealth.com for more information.
Legal Notice Regarding Forward-Looking Statements: "Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. Pacer Health disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to risks associated with changes in general economic and business conditions, actions of our competitors, the extent to which we are able to develop new services and markets for our services, the time and expense involved in such development activities, the level of demand and market acceptance of our services, changes in our business strategies.
