MedCath Corp.
| Company type | Public |
|---|---|
| Industry | Healthcare |
| Founded | 1988 |
| Fate | Liquidated and dissolved in 2012 |
| Headquarters | United States |
Key people | O. Edwin French (CEO from 2006), Phil Mazzuca (COO), Art Parker (CEO from 2011) |
| Products | Cardiac healthcare services including catheterization laboratories, nuclear cardiology, sleep medicine, acute care cardiac hospitals |
MedCath Corporation was a U.S.-based cardiac healthcare firm that traded publicly on NASDAQ. Established in 1988 under the name MedCath Partners, the company provided services including catheterization laboratories, nuclear cardiology, and sleep medicine. By 1998, it operated under the name Medcath, Inc. The company broadened its scope in 1994 by entering the acute care cardiac hospital sector. Following the enactment of the Affordable Care Act, which prohibited the creation of new physician-owned hospitals, MedCath proceeded to divest its healthcare holdings and ultimately liquidated, distributing the net proceeds to its shareholders.
In early 2005, MedCath altered its strategic focus from constructing cardiac hospitals with physician partners to collaborating with existing hospitals to develop or expand cardiac care units. This shift in direction was overseen by CEO O. Edwin French—who joined from Universal Health Services in 2006—and resulted in a stock price increase from $14 to $31.80 per share by September 2006. French appointed Phil Mazzuca as Chief Operating Officer and, upon his retirement in 2011, CFO Art Parker took over as CEO.
On March 1, 2010, in response to federal healthcare reforms limiting new physician-owned hospitals, MedCath’s board established a strategic options committee to evaluate potential sales of the company or its assets.
Between October 2010 and December 2011, MedCath executed several asset divestitures including Arizona Heart Hospital for $32 million, Avera Heart Hospital for $20 million, Heart Hospital of Austin for $83.8 million, TexSan Heart Hospital for $78.5 million, among others. A significant transaction during this period was the sale of its MedCath Partners division in May 2011 for $25 million to a joint venture between LifePoint Hospitals and Duke University Health System.
In August 2011, MedCath completed the sale of Heart Hospital of New Mexico for $119 million and Arkansas Heart Hospital for $73 million. Additional disposals included Louisiana Medical Center & Heart Hospital at $23 million, Hualapai Mountain Medical Center, and Harlingen Medical Center for $9 million.
From October 2011 through September 2012, MedCath distributed liquidating payments exceeding $17 per common share.
On July 2, 2012, the company sold its remaining interest in Bakersfield Heart Hospital for roughly $34 million and announced that shareholders had approved full liquidation and dissolution.
MedCath officially terminated its corporate existence by filing a Certificate of Dissolution with Delaware authorities on September 21, 2012.