MedCath to Sell AZ Hospital for $31M
Kingman Regional Medical Center in Arizona says it has no firm plans for the 70-bed Hualapai Mountain Medical Center that it plans to acquire from MedCath Corp.
"The deal was too good to pass up," explained Jamie Taylor, director of development and public relations for KRMC during a telephone interview. MedCath constructed the Arizona hospital just three years ago for $75 million. Pending MedCath shareholder approval the building, equipment, inventory and 18.6 acres of adjacent land will be sold to KRMC for $31 million.
KRMC at one time considered adding 40 beds to its 235-bed facility but Taylor said the $41 million price tag made the construction prohibitive. "Acquiring Hualapai Mountain is a much better deal for us."
The acquisition means Kingman will revert to a one hospital town. The closest hospitals are 60 miles away in Lake Havasu City and Bullhead City.
Because KRMC has no immediate plans for Hualapai Mountain Medical Center, it will not acquire the facility's business license. MedCath has notified employees that it will close Hualapai Mountain by September 30.
Taylor said once the deal is finalized KRMC officials will meet to develop a strategic plan for the former HMMC. The two facilities are located just three miles apart and so there is no need to duplicate services. Initially Hualapai Mountain probably will become an outpatient facility with additional services added as needed.
It is expected to take two to four months to get licensing and health plan contracts in place to reopen the facility.