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) May 16, 1997
MEDCATH INCORPORATED
(Exact name of registrant
as specified in its charter)
North Carolina 0-25176 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
Page 1 of 5
<PAGE>
Item 5. Other Events
On May 16, 1997 MedCath Incorporated announced the acquisition of Ultimed, Inc.,
a Los Angeles, California based corporation. Ultimed provides cardiovascular
disease management services to IPAs, HMOs and large cardiology groups. Ultimed
currently manages over 150,000 capitated and noncapitated lives.
Exhibits:
99.1 - Press Release dated May 16, 1997
Page 2 of 5
<PAGE>
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: May 22, 1997 By: /s/ Richard J. Post
-----------------------
Richard J. Post
Chief Financial Officer,
Secretary and Treasurer
Page 3 of 5
Exhibit 99.1
MEDCATH INCORPORATED ANNOUNCES
ACQUISITION OF ULTIMED
COMPANY GAINS VALUABLE MANAGED CARE EXPERTISE
Charlotte, North Carolina (May 16, 1997) - MedCath Incorporated (Nasdaq/NM:MCTH)
today announced the acquisition of Los Angeles, California-based Ultimed, Inc.
which provides cardiovascular disease management services to IPAs, HMOs and
large cardiology groups. Ultimed currently manages over 150,000 capitated and
noncapitated lives. Terms of the transaction were not disclosed.
Ultimed was founded in 1995 by Dr. Joseph M. Ruggio, a practicing Board
Certified Invasive Cardiologist with over 10 years of experience in managing
large capitated Medicare and commercial populations. Dr. Ruggio served as
chairman of the Department of Cardiology for FHP, Inc., as well as Director
of Invasive /Interventional Cardiology for FHP, Inc.for 10 years. Dr. Ruggio
has previously served as a consultant to the Health Care Financing
Administration (HCFA), the American College of Cardiology and the American
Heart Association.
Stephen R. Puckett, President of MedCath said, "The Ultimed acquisition
provides MedCath with the experience and operational systems necessary to
contact with HMO's for the provision of all cardiovascular care for their
enrollees. Dr. Ruggio, Ultimed and its senior management have extensive
experience in managing lives on a fully capitated basis in the greater Los
Angeles area, one of the most competitive markets in this country for managed
care. We are excited about the potential of combining Ultimed's knowledge base
and system capability with MedCath's unique low cost structure in our physician
practices, heart hospitals and diagnostic division. We believe that we can
develop a product for managed care that will allow significant
Page 4 of 5
<PAGE>
savings not currently available in the market and simultaneously create value
for physicians with whom we are aligned throughout the country."
Statements contained in this press release which are not historical
facts may be considered forward-looking statements as that term is defined in
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties which could cause actual
results to differ materially from those projected. Such risks and uncertainties
include construction and development risks associated with heart hospitals,
operating losses and negative cash flows during the initial operation of heart
hospitals; dependence on physician relationships; dependence on long-term
management contracts; fluctuations in quarterly operating results from
seasonality, population shifts and other factors; dependence on key management;
as well as other risks detailed in the Company's filings with the Securities and
Exchange Commission.
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 two specialty heart hospitals and has
four additional heart hospitals under development, manages three medical
practices comprised of a total of 76 physicians, manages fixed-site cardiac
diagnostic and therapeutic centers, and owns and operates mobile cardiac
catheterization laboratories serving networks of hospitals.
Page 5 of 5
