Acquisition of Six Specialty Hospitals
MECHANICSBURG, Pa., July 14, 2004 -- Highmark Healthcare LLC, a specialty hospital company, announced today that it has closed on the acquisition of three medical rehabilitation hospitals and one freestanding long-term acute care hospital (LTACH) totaling 228 beds. The hospitals are located in Kentucky, New Jersey, and California. Closing of two remaining freestanding LTACHs totaling 207 beds located in Colorado and Massachusetts will take place during the third quarter. As part of the transaction the company also acquired 9 outpatient medical rehabilitation centers.
The transaction was financed by Medical Properties Trust, Inc. (MPT), a Birmingham, AL-based real estate investment trust focused on the specialty and acute care hospital sectors.
The medical rehabilitation hospitals provide patients with a comprehensive array of rehabilitation services focused on returning patients to their normal daily lives after accident or debilitating illness. The LTACH treats patients with medically complex conditions who require extensive clinical care.
Brad Hollinger, Chairman and CEO of Highmark Healthcare stated that "The acquisition of the six specialty hospitals represents a solid platform from which to grow. However, our primary focus will be on maximizing the value of these hospitals through programmatic enhancements, improved technology, and new service offerings. We believe the industry is poised for future growth of freestanding specialty hospitals, given the spatial constraints of acute care hospital providers and the favorable demographic trends. By partnering with MPT the company has an acquisition and facility expansion capability for future growth. We are very excited about working again with Ed Aldag, MPT's founder and CEO. He has assembled an executive team with significant experience in the specialty hospital field."
Highmark Healthcare LLC is a national specialty healthcare provider focused on the development and/or acquisition of freestanding medical rehabilitation and long-term acute care hospitals. Highmark was founded by Brad Hollinger who has assembled a team of successful senior executives in the medical rehabilitation and LTACH fields.
Brad Hollinger, CEO
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