MIAMI--(BUSINESS WIRE)--June 13, 2006--Pacer Health Corporation (OTCBB:
PHLH -
News), an owner-operator of acute care hospitals, medical treatment centers and psychiatric care facilities in the Southeastern United States, announced today that it has purchased 15 acres of land with an appraised value of $2.5 million adjacent to Interstate 20 in Greene County, Georgia. The land will be used to construct a replacement facility for Minnie G. Boswell Memorial Hospital, which Pacer Health has managed and operated since June 22, 2004.
Pacer Heath formally closed on the transaction yesterday and concurrently reported that it has initiated the process of designing the new hospital.
An accredited JCAHO (Joint Commission on Accreditation of Health Care Organizations) facility, Minnie G. Boswell is comprised of a 25-bed acute care hospital and 29-bed skilled nursing facility primarily serving the residents of Greensboro, Georgia. The hospital's current facilities were constructed in 1949, and though Pacer Health has substantially improved the property, the structure itself remains outdated, resulting in costlier implementation of new technologies.
Pacer Health had previously announced its intent to design the replacement facility for long-term growth, so that as Greene County's resident population grows, the hospital will continue to provide for its changing medical needs. The new facility will provide easier and more convenient access for patients as it will be closer to the center of the county, adjacent to a major thoroughfare, and only about one-and-a-half miles outside of Greensboro. The new location also is within three-and-a-half miles of the existing hospital, facing I-20 and just east of Highway 44.
By building a newer facility and moving to a more central location, Pacer Health intends to retain a vast majority of the hospital's traditional patients, 85 percent of whom are Medicare or Medicaid recipients, while attracting many new patients from nearby Lake Oconee.
"A new, state-of-the-art hospital with modern diagnostic and treatment equipment is vital to meeting the long-term healthcare needs of Greene County's residents and visitors," said Rainier Gonzalez, chairman and CEO of Pacer Health. "Pacer Health is committed to providing quality healthcare to area residents well into the future, and this purchase should be viewed as the first in a series of milestones that will culminate in the opening of a technologically advanced facility that will set the healthcare standard in Greene County, Georgia."
Pacer Health acquired the purchase option in June 2005. The land acquisition has been financed by SPF Healthcare Capital, based in Scottdale, Georgia.
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 Southeastern United States. Please visit http://www.pacerhealth.com for more information.
Legal Notice Regarding Forward-Looking Statements: "Forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 may be included in this news release. These statements relate to future events or our future financial performance. These statements are only predictions and may differ materially from actual future results or events. Pacer Health disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. There are important risk factors that could cause actual results to differ from those contained in forward-looking statements, including, but not limited to, risks associated with changes in general economic and business conditions, actions of our competitors, and changes in our business strategies.
