Medical Facilities Corp. sells Indiana hospital to physician investors

Medical Facilities Corp., reached a deal to sell the majority of its stake in Mishawaka, Ind.-based Unity Medical and Surgical Hospital to a group of physician investors.

What you should know:

1. Indiana-based providers South Bend Orthopaedics, The South Bend Clinic and Allied Physicians of Michiana purchased a majority stake in the surgical hospital.

2. Medical Facilities will retain a 31.7 percent share in the hospital but will no longer consolidate the hospital's operating results into MFC's quarterly results.

3. The company also reached a deal to sell the land the hospital sits on and the building for $25 million to an investor affiliated with the physician groups.

Company President and CEO Robert Horrar said of the transaction: "After actively pursuing various strategic alternatives, our plan to improve [the hospital] has come together. By partnering with three of the premiere [sic] physician groups in the area, we are taking an important step in enhancing the long-term strength of both [the hospital] and [MFC], as the transaction should significantly improve facility utilization and financial performance."

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