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Pacer Health Corporation Enters Into Letter of Intent to Lease Knox County Hospital in Barbourville, Kentucky; Company Expects to Begin Operating the Hospital Next Month 2/27/2006
MIAMI, Feb 27, 2006 (BUSINESS WIRE) -- 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 that it has signed a binding letter of intent to lease Knox County Hospital, a 42-bed, state-of-the-art acute care facility in Barbourville, Kentucky.
Under the terms of the agreement, Pacer Health agrees to preserve the full suite of healthcare services currently available at the hospital, including general healthcare and emergency services for the area's indigent population. The company will lease the facility and its real estate for a three-year period commencing as soon as definite documentation is executed, and the agreement carries an option to renew the lease for two additional periods at Pacer's discretion.
Pacer Health will capture all revenues from the operation of Knox County Hospital during the lease period and also will fund any operational losses. The agreement also provides Pacer Health with the option to purchase the hospital, and management anticipates this option will be executed within the life of the lease.
"Pacer Health management has met with the Knox County Hospital Board and reviewed the facility's finances and operations in great detail," said Rainier Gonzalez, chairman and CEO of Pacer Health. "Pacer Health is very excited about what we feel is the first step in our acquisition of Knox County Hospital. This facility is an important contributor to the economy of rural Southeastern Kentucky, and the residents of Knox County deserve adequate access to quality healthcare. Pacer Health is now onboard to ensure that the hospital can continue to function in both of these vital roles."
Knox County Hospital offers a comprehensive suite of healthcare services, including nuclear medicine, surgical services, physical therapy, spiral C.T., mammography, 24-hour emergency services, and a 16-bed skilled nursing unit. The hospital employs a staff of more than 250 and receives more than 16,000 emergency room visits a year.
About Pacer Health Corporation
Pacer Health Corporation is an owner-operator of acute care hospitals, medical treatment centers, and psychiatric care facilities serving non-urban areas throughout the Southeast. Please visit http://www.pacerhealth.com for more information.
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