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NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 12, 1999--Renal Care Group, Inc. today announced that it has signed a definitive agreement to merge with Chicago-based Dialysis Centers of America, which operates 12 dialysis centers in Chicago and surrounding areas. Approximately 25 nephrologists are affiliated with Dialysis Centers of America, and the Company serves approximately 1,700 patients with end stage renal disease. In addition, Dialysis Centers of America provides acute dialysis services to six local hospitals. The merger is expected to add in excess of $55 million to Renal Care Group's 1999 consolidated revenues. The transaction will be a tax-free exchange of stock and will be treated as a pooling-of-interests for accounting purposes. Terms were not disclosed.
Dennis Sloan, M.D., senior vice president of medical affairs of Dialysis Centers of America, said, ``Clearly, Renal Care Group possesses a unique vision for the future of nephrology care. Their unwavering commitment to patient care is consistent with that of the physicians of Dialysis Centers of America, and this merger will result in further benefit to the patients who entrust us with their care."
Mr. Sam Brooks, president and chief executive officer of Renal Care Group, Inc., said, ``The merger with Dialysis Centers of America is a significant step in our continuing development into a national provider of services related to nephrology disease. It represents a major expansion not only in terms of the number of patients we serve and the number of highly respected nephrologists affiliated with the Company, but also the establishment of a significant presence in another major U.S. healthcare market. The goal of our physicians, staff and management remains, as always, focused on the delivery of the best possible value in service to our patients."
In addition, Renal Care Group, Inc. announced that it had entered into a joint venture agreement with Froedtert Hospital in Milwaukee, Wisconsin, to provide outpatient dialysis services in conjunction with the Medical College of Wisconsin. Initially, the joint venture will operate two existing facilities and begin construction of a new clinic. The joint venture is expected to serve approximately 200 patients and will provide acute dialysis services to three area hospitals. Nephrologists affiliated with the Division of Nephrology at the Medical College of Wisconsin in Milwaukee will serve as the medical directors of the clinics.
Renal Care Group also announced that it had entered into an agreement to manage the outpatient and inpatient dialysis programs of the University of Arkansas Medical School. The outpatient program serves approximately 100 patients.
Renal Care Group, Inc. is a nephrology services company that focuses on providing care to patients with kidney disease, including patients suffering from chronic kidney failure. Following these transactions, the Company will provide dialysis and ancillary services to approximately 13,200 patients through 172 owned outpatient dialysis centers in 21 states, in addition to providing acute dialysis services in 102 hospitals.
This press release contains forward-looking statements that involve various risks and uncertainties. Actual results could differ materially from those contained in these forward-looking statements due to certain factors, including business and economic conditions and availability of financing. These and other risks and uncertainties are detailed in the Company's reports filed with the SEC. |
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