Info on new IHS purchase. I am concerned that they don't have enough capital to kept this up. Debt already on watch negative. I bet this might push it over the edge. Any thoughts on IHS ability to manage this many purchases?
PR NewsWire Integrated Health Services Acquiring Lithotripsy Business from Coram
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OWINGS MILLS, Md., Aug. 21 /PRNewswire/ -- Integrated Health Services,Inc. (NYSE: IHS) today announced that it has entered into a definitive purchase agreement to acquire the lithotripsy division of Coram Healthcare (NYSE: CRH). Under the terms of the agreement, IHS will pay $130 million in cash for the division including Coram's interest in 13 limited partnerships.
Lithotripsy is a non-invasive technique that uses shock waves to
disintegrate kidney stones. Lithotripsy is an attractive alternative to other more invasive techniques otherwise used in treating urinary tract stones because it is non-invasive and less costly.
Coram's lithotripsy business, which has annualized revenues of
approximately $50 million, currently consists of 33 lithotripsy machines that provide services in approximately 180 locations in 18 states. Lithotripsy is a mobile technology which allows the machines to be moved in order to meet patient needs and market demands.
"We will combine the lithotripsy business with our existing mobile
diagnostic division which provides mobile x-rays and elctrocardiograms,"stated Robert N. Elkins, M.D., Chairman and Chief Executive Officer of IHS."This business line will expand the network of cost-effective mobilediagnostic and treatment services we can offer to patients, payors and other providers."
The transaction, which has been approved by the Board of Directors of each company, is subject to various customary conditions prior to closing, including, among other things, the requisite consent of the partners of each lithotripsy partnership. The closing of the acquisition of the lithotripsybusiness is anticipated to occur within 60 days.
Integrated Health Services is a highly diversified health services
provider, offering a broad spectrum of post-acute medical and rehabilitative services through its nationwide healthcare network. IHS's post-acute services include home nursing services, home infusion services, subacute care, inpatient and outpatient rehabilitation, respiratory therapy, hospice care, and diagnostic services. Supporting the full continuum of healthcare needs,
IHS currently operates over 1,000 post-acute service locations in 45 statesthroughout the U.S.
SOURCE Integrated Health Services, Inc.
-0- 08/21/97
/NOTE TO EDITORS: Available on the Internet, ihs-inc.com /
/CONTACT: Robert N. Elkins, M.D., Chairman & CEO, or Marc B. Levin,
Executive Vice President, of Integrated Health Services, 410-998-8400; or
Anthony J. Russo, Ph.D., of Noonan/Russo Communications, Inc., 212-696-4455,
ext. 202/
(IHS CRH)
CO: Integrated Health Services, Inc.; Coram Healthcare
ST: Maryland
IN: MTC
SU: TNM |
