Medical Facilities Corp. signed a letter of intent to acquire Unity Medical and Surgical Hospital in Mishawaka, Ind.
Here are six takeaways:
1. MFC would acquire an indirect 83 percent interest in the physician-owned medical and surgical hospital. MFC is funding the deal on available cash as well as a draw of MFC's credit facility.
2. The 50,000-square-foot hospital offers spine surgery, pain management, orthopedic, ophthalmology and podiatry services.
3. Currently, Physicians ASC Management owns 86 percent of the hospital's operations, of which MFC will acquire a 72 percent interest in PAM as per the letter of intent. This 72 percent interest represents an indirect 62 percent ownership interest in the hospital.
4. Of the 72 percent, MFC can purchase all but 4 percent of the remaining PAM ownership interest over the next three years, of which the hospital can determine the fair market value. Unity's practicing physicians will own the remaining ownership. MFC also acquired an 84 percent indirect interest in Unity's real estate for a transaction totaling $27 million.
5. MFC projects to complete the acquisition by the end of this month.
6. MFC owns and operates one ambulatory surgery center in California as well as four specialty surgical hospitals located in Arkansas, Oklahoma and South Dakota.
More articles on surgery centers:
Building an ASC from the ground up: 4 focus areas when opening a successful center
Westgreen Surgical Center submits form D for $220.5k equity financing: 4 notes
Physicians fight to retract BMJ medical error study — Here's why