MIAMI--November 26, 2007--Pacer Health Corporation (OTCBB: PHLH), an owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities in the southeastern United States, announced today its entrance into a non-binding letter of intent for the sale of Minnie G. Boswell Memorial Hospital, an acute care hospital located in Greene County, Georgia to Saint Joseph’s Health System, Inc. of Atlanta, Georgia.
"The sale of our equity holdings in Minnie G. Boswell will strengthen our working capital and positively impact our balance sheet," says Rainier Gonzalez, chairman and CEO of Pacer Health. "We believe we have improved the quality of patient care over the past two years, and we leave the facility in very capable hands."
The sale is pending the completion of due diligence and the execution of a definitive purchase agreement. Pacer Health and Saint Joseph’s Health System, Inc anticipate no interruption of service at the hospital during the execution phase of this agreement, which is expected to be finalized no later than December 31, 2007. “Saint Joseph’s is excited to bring our mission for high quality and compassionate patient care to Greene County residents. We look forward to working with neighboring hospitals and physicians to further strengthen health care in the region. This is step one in a process that we hope will result in the signing of a definitive purchase agreement,” says Kirk Wilson, president and CEO of Saint Joseph’s Health System. Minnie G. Boswell is a 25-bed acute care hospital accredited by JCAHO (Joint Commission on Accreditation of Health Care Organizations). Pacer Health has managed and operated Minnie G. Boswell since June 22, 2004, when it entered into an agreement to purchase the then financially troubled hospital. At the time, the hospital had announced its closure.
“In addition to overseeing the day-to-day operations of Minnie G. Boswell, Pacer Health introduced a series of strategies that successfully reduced costs, enhanced operating efficiency, reduced a substantial monthly operating loss with minimal effect on staff, as well as made considerable improvements to quality of care,” says Gonzalez.
Pacer Health specializes in the operation of medical facilities. The company plans to continue expanding its business over the next several years, largely through the acquisition of additional medical facilities and the consolidation of these properties under the Pacer Health business model.
About Pacer Health Corporation
Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers, and psychiatric care facilities, primarily serving non-urban areas throughout the Southeast. Please visit http://www.pacerhealth.com/ more information.
About Saint Joseph’s
Saint Joseph’s, the regions premier provider of cardiac and vascular services, is recognized as one of the 50 top hospitals in the country and is Atlanta’s oldest hospital. Founded by the Sisters of Mercy in 1880, today Saint Joseph’s is a 410-bed, acute-care hospital recognized as one of the leading specialty-referral hospitals in the Southeast.
As a leader in cardiac, neurological, vascular, gastrointestinal, respiratory, orthopedic and cancer care, among others, Saint Joseph’s offers its patients the latest procedures and treatments by providing its medical staff of more than 750 physicians with research services and the most advanced technology available. In addition to serving the metro-Atlanta area, patients come from all over Georgia, nearby states and internationally because of Saint Joseph’s specialized services, excellent reputation and unique patient experience. Sponsored by the Sisters of Mercy, Saint Joseph’s is a member of Catholic Health East. For more information, visit the website at http://www.saintjosephsatlanta.org/.
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, actions of our competitors, the extent to which we are able to develop new services and markets for our services, the level of demand and market acceptance of our services, and changes in our business strategies.
