Printer Friendly


 BIRMINGHAM, Ala., Dec. 3 /PRNewswire/ -- HEALTHSOUTH Rehabilitation Corporation (NYSE: HRC) announced today that a definitive agreement has been signed with National Medical Enterprises (NME) (NYSE: NME) to acquire 28 rehabilitation hospitals and 45 outpatient rehabilitation centers.
 "When this asset purchase is completed," said Richard M. Scrushy, chairman of the board, president and chief executive officer of HEALTHSOUTH, "HEALTHSOUTH will be the nation's largest provider of inpatient and outpatient rehabilitative healthcare services. We will have 45 rehabilitation hospitals, representing 3,467 beds; 216 outpatient facilities and four specialty medical centers. Altogether, we will be operating 265 locations, including satellite clinics, in 32 states and employ more than 13,000 people.
 "We believe cost effective rehabilitative healthcare services will become an increasingly important component in the delivery of high quality care in the rapidly changing healthcare environment. The acquisition of the NME facilities, which geographically complement our existing network of facilities, will further enhance our already strong position within the managed care market. We will be the leading, cost- efficient provider of choice for managed care networks throughout the country. By virtue of the 265 locations, we will offer patients, payors and employers a provider network of rehabilitative healthcare services, focused on quality care and proven outcomes. This builds on HEALTHSOUTH's strength in negotiating and fulfilling national agreements with managed care networks, insurance companies, large regional and national employer groups and provider networks and alliances."
 Under the terms of the agreement, HEALTHSOUTH will pay approximately $300 million in cash to NME for the facilities plus the net book values of certain inventory, receivables and prepayments, subject to certain adjustments. The majority of facilities to be acquired are in states which require Certificates of Need. The transaction will be financed by HEALTHSOUTH's agent bank, NationsBank, and is structured as an asset purchase. Other than working capital items, HEALTHSOUTH will assume no existing liabilities from the operation of the facilities and has been fully indemnified by NME for any existing liabilities. This transaction is subject to Hart-Scott and other regulatory review and is expected to close on or about Dec. 31, 1993. HEALTHSOUTH expects the transaction to be additive to 1994 earnings before any cost savings or assumptions relating to operating improvements.
 -0- 12/3/93
 /EDITOR'S NOTE: You are invited to participate in a conference call with the management of HEALTHSOUTH Rehabilitation Corporation to discuss the proposed acquisition which is described above. The conference call
will take place: 2 p.m. (EST)
 Friday, Dec. 3
 Please call 203-796-7561 approximately 10 minutes before the scheduled time and asK for the HEALTHSOUTH conference call./
 /CONTACT: Richard M. Scrushy, chairman of the board, president and CEO, or Aaron Beam Jr., chief financial officer, HEALTHSOUTH Rehabilitation, 205-967-7116/

CO: HEALTHSOUTH Rehabilitation Corporation; National Medical
 Enterprises ST: Alabama IN: HEA SU: TNM

BR-TG -- AT004 -- 0215 12/03/93 12:27 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 3, 1993

Terms of use | Copyright © 2018 Farlex, Inc. | Feedback | For webmasters