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Nashville, Tennessee (November 1, 2000) — Renal Care Group, Inc. (Nasdaq/NM:RCGI) today announced that it has entered into definitive agreements to acquire the assets of the dialysis program of Providence St. Peter Hospital, Olympia, Washington. The program currently provides dialysis services to approximately 225 patients as well as dialysis services to inpatients at Providence St. Peter Hospital. The transaction is expected to close at year-end. Other terms were not disclosed.
"This transaction is a significant opportunity for our patients, our communities, and Providence St. Peter Hospital," said Scott Bond, chief executive officer of Providence St. Peter Hospital. "It brings specialized clinical expertise in dialysis and the necessary resources to improve and expand dialysis services for South Sound patients. At the same time, it provides the hospital with a part of the funding it needs to initiate critical campus renewal, including expansion of the emergency department."
Sam Brooks, chief executive officer of Renal Care Group, Inc., said, "We are delighted with the opportunity to affiliate with Providence St. Peter Hospital. This represents a significant expansion of Renal Care Group's presence in and commitment to the Pacific Northwest. The goal of our physicians, staff, and management remains, as always, the delivery of the best possible care and value in the services we provide to our patients."
Providence St. Peter Hospital, founded by the Sisters of Providence in 1887, is a not-for-profit, 390-bed hospital serving the five-county South Sound region of Washington with comprehensive medical, surgical, and mental health services. More information about Providence St. Peter Hospital can be found at www.providence.org/swsa.
Renal Care Group also announced that it has completed the formation of a joint venture with Sacred Heart Medical Center, Spokane, Washington, to provide dialysis services to persons with End Stage Renal Disease in Eastern Washington and Northern Idaho. The joint venture will operate the existing dialysis programs of Sacred Heart. The program currently provides dialysis services to approximately 425 patients through five outpatient dialysis centers. The program also provides acute services to patients in two hospitals in its service area.
Renal Care Group will own 80% of the new venture, and Sacred Heart will own the balance. Business operations of the joint venture will be managed by Renal Care Group. Other terms of the transaction were not disclosed. The acquisition of the program by the joint venture will occur in stages, with a substantial majority of the program expected to be contributed by Sacred Heart by December 1, 2000.
Sacred Heart Medical Center is a 623-bed hospital and is part of the Provident Services of Eastern Washington network of healthcare organizations sponsored by the Sisters of Providence. Thirty-eight years ago, Sacred Heart was a pioneer of kidney dialysis in the Northwest. It continues to serve the region, providing all aspects of the treatment of kidney disease: inpatient and outpatient dialysis, home dialysis, and a kidney transplant program.
Renal Care Group, Inc. is a dialysis services company that provides care to patients with kidney disease. The Company currently treats approximately 15,900 patients through 193 owned outpatient dialysis facilities, in addition to providing acute dialysis services to 108 hospitals. Over 5,000 associates provide services across the Company's 23-state network.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management's expectations and are based upon currently available information. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of factors discussed in more detail in the Company's reports filed with the Securities and Exchange Commission, including without limitation Renal Care Group's annual report on Form 10-K for the year ended December 31, 1999. Copies of these filings are available from Renal Care Group upon request.
Contact:
R. Dirk Allison
Chief Financial Officer
615-345-5500 |
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