Message #3 From:
NewsBot Date: September 6, 2005 08:15:00 AM
PHLH News Georgia Attorney General Approves Sale of Minnie G. Boswell Memorial Hospital to Pacer Health Corporation; Favorable Opinion Clears Path for Pacer Health to Complete Planned Acquisition
MIAMI & GREENSBORO, Ga.--(BUSINESS WIRE)--Sept. 6, 2005--Pacer Health Corporation (OTCBB:PHLH), an owner-operator of acute care hospitals and psychiatric care facilities, announced today that the Georgia State Attorney's office has issued a favorable opinion on the company's planned acquisition of Minnie G. Boswell Memorial Hospital, a rural healthcare facility that primarily serves the residents of Greensboro, Georgia. The action effectively clears the path for Pacer Health to complete the planned acquisition.
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. Pacer Health has managed and operated Minnie G. Boswell since June 22, 2004, when it solidified an agreement to purchase the then financially troubled hospital.
In addition to overseeing the day-to-day operation of Minnie G. Boswell since that time, Pacer Health has introduced a series of strategies that have successfully reduced costs, enhanced operating efficiency, and reversed a substantial monthly operating loss with minimal effect on staff and considerable improvements to quality of care.
According to reports published by the Athens Banner-Herald, Minnie G. Boswell experienced a loss of nearly $800,000 in just the one-month period immediately preceding Pacer Health's management takeover and an average operating loss of $150,000 per month for the year ended July 31, 2004. Following the Pacer Health restructure, the facility experienced a 33 percent increase in operating revenue for the period ended July 31, 2005.
"The addition of Minnie G. Boswell enhances our company's operations and adds value for our shareholders," said Rainier Gonzalez, chairman and CEO of Pacer Health. "Pacer Health was committed to keeping Minnie G. Boswell open and operational as we proceeded with significant financial and operational changes, and we are delighted that the State Attorney's office has approved this transaction. Pacer Health intends to move diligently towards finalizing this acquisition."
About Pacer Health Corporation
Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers, and psychiatric facilities, primarily serving the growing senior citizen population and non-urban areas throughout the Southeast. Shareholders are encouraged to visit the company's web site at http://www.pacerhealth.com and register to receive Pacer Health news updates.
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 (including in the information technology and financial information industry), 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.
