SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 16, 1996
MEDCATH INCORPORATED
(Exact name of registrant
as specified in its charter)
North Carolina 33-85458 56-1635096
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
7621 Little Avenue, Suite 106, Charlotte, North Carolina 28226
(Address of principal executive offices)
Registrant's telephone number, including area code (704) 541-3228
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Item 5. Other Events
On July 16, 1996, MedCath Incorporated announced that the Company had
engaged Ernst & Young LLP, independent auditors, to conduct certain procedures
related to the accounting treatment for the billing and recording of Medicare
patient revenues in its McAllen Heart Hospital. The Company also announced that
it expects its second heart hospital in Little Rock, Arkansas, to receive timely
Medicare certification and open on schedule. Potential delays in Medicare
certification by HCFA due to reduced federal funding are now unlikely since the
Department of Health and Human Services recently agreed to accept the successful
completion of an initial survey by the Joint Commission on Accreditation of
Healthcare Organizations (JCAHO) for entry into the Medicare program.
On July 22, 1996 MedCath Incorporated announced that the Company
has obtained financing for the land purchase and construction of its third heart
hospital, Tucson Heart Hospital, located in Tucson, Arizona. The financing,
which closed on July 19, 1996, is being furnished by a REIT and provides for
amounts up to $20 million.
Exhibits:
99.1 - Press Release dated July 16, 1996
99.2 - Press Release dated July 22, 1996
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
MEDCATH INCORPORATED
Date: July 23, 1996 By: /s/ Daniel L. Belongia
---------------------------
Daniel L. Belongia
Secretary and Chief Financial
Officer
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Exhibit 99.1
MEDCATH CONFIRMS ITS MEDICARE ACCOUNTING TREATMENT
AS SOUND AND APPROPRIATE
JCAHO Option for Initial Medicare Inspection Announced by HCFA
Charlotte, North Carolina (July 16, 1996) - MedCath Incorporated
(Nasdaq/NM:MCTH) today announced that the Company had engaged Ernst & Young LLP,
independent auditors, to conduct certain procedures related to the accounting
treatment for the billing and recording of Medicare patient revenues in its
McAllen Heart Hospital during the period from January 24, 1996, (date the
hospital received its Medicare certification) to March 31, 1996. The Company
believes that, based upon the work of Ernst & Young and its own review, the
McAllen Heart Hospital records revenue in accordance with GAAP and industry
standards.
Stephen R. Puckett, president of MedCath Incorporated, said, "MedCath
is very pleased that the results of the work of Ernst & Young, coupled with our
own review, confirm our position that the Company's policies regarding the
recognition of Medicare revenues at the McAllen Heart Hospital are sound and
appropriate. We remain dedicated to the basic fundamentals of our business, and
we expect to aggressively continue to develop heart hospitals"
MedCath also announced that it expects its second heart hospital in
Little Rock, Arkansas, to receive timely Medicare certification and open on
schedule. Historically, for a hospital to receive Medicare certification, it
must successfully complete an initial survey in accordance with the rules
established by the Health Care Financing Administration (HCFA), an agency of the
Department of Health and Human Services within the federal government which sets
guidelines for Medicare. Potential delays in Medicare certification by HCFA due
to reduced federal funding are now unlikely since the Department of Health and
Human Services recently agreed to accept the successful completion of an initial
survey by the Joint Commission on Accreditation of Healthcare Organizations
(JCAHO) for entry into the Medicare program.
In commenting on the Little Rock heart hospital, Mr. Puckett said, "We
are pleased with the progress being made with the construction of the 84-bed
Arkansas Heart Hospital. When completed, the facility will be fully equipped for
cardiologists and cardiovascular surgeons to perform a comprehensive range of
diagnostic, interventional and surgical services. We are also pleased to learn
that we have another source through which we can obtain Medicare certification
once the hospital is operational."
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Exhibit 99.1 continued
MedCath Incorporated is a provider of cardiology and cardiovascular
services through the operation of specialized facilities and the management of
physician practices. The Company operates one specialty heart hospital and has
three additional heart hospitals under development, manages two medical
practices comprised of a total of 63 physicians, manages fixed-site cardiac
diagnostic and therapeutic centers, and owns and operated mobile cardiac
catheterization laboratories serving networks of hospitals.
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Exhibit 99.2
MEDCATH OBTAINS FINANCING FOR THIRD HEART HOSPITAL
Charlotte, North Carolina (July 22, 1996) - MedCath Incorporated
(Nasdaq/NM:MCTH) today announced that the Company has obtained financing for the
land purchase and construction of its third heart hospital, Tucson Heart
Hospital, located in Tucson, Arizona. The financing, which closed on July 19,
1996, is being furnished by a REIT and provides for amounts up to $20 million.
The 66-bed Tucson Heart Hospital will be owned and operated by MedCath
of Tucson L.L.C., a limited liability company in which MedCath owns a majority
interest and serves as manager. Other investors include 23 Tucson cardiologists
who will be actively involved in the design, development and management of
medical matters in the hospital. When completed, the facility will be fully
equipped for cardiologists and cardiovascular surgeons to perform a
comprehensive range of diagnostic, interventional and surgical services.
Stephen R. Puckett, president of MedCath Incorporated, said, "We are
pleased to have completed this transaction which provides the financing for the
land purchase and construction of our third heart hospital. We believe our
ability to secure this financing confirms the validity of our heart hospital
strategy, and is indicative of the quality of financing mechanisms we have
available to support our growth. At the present time, we expect to break ground
on the Tucson Heart Hospital this month and to open in July of 1997."
MedCath Incorporated is a provider of cardiology and cardiovascular
services through the operation of specialized facilities and the management of
physician practices. The Company operates one specialty heart hospital and has
three additional heart hospitals under development, manages two medical
practices comprised of a total of 63 physicians, manages fixed-site cardiac
diagnostic and therapeutic centers, and owns and operates mobile cardiac
catheterization laboratories serving networks of hospitals.
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