By Ely Portillo
elyportillo@charlotteobserver.com
Posted: Friday, Sep. 21, 2012
MedCath, a Charlotte-based hospital operator that once had annual revenue of $636 million, is filing paperwork to dissolve Friday, brought down by changing regulations, consolidation, and a heavy reliance on the rapidly changing business of cardiac care.
The company already has finished selling off its eight majority-owned hospitals, its two minority stakes in hospitals, and other cardiac care practices. After filing a certificate of dissolution in Delaware on Friday, the company will distribute $6.33 per share to its stockholders and halt trading of its shares for good.
MedCath’s fall highlights the swift pace of changes in the health care landscape. Shifting regulations threatened the company’s fundamental business structure. And as its core business of cardiac care began to suffer, the company’s moves to diversify – into weight-loss surgery and general acute care – couldn’t boost its fortunes quickly enough.
After Friday’s distribution, stockholders will have received liquidation payments totaling $13.18 per share – still a steep fall for a stock that sold at $33.07 when new shares were offered in 2007. MedCath had concluded that continuing to run the business was unlikely to generate greater returns for shareholders than selling off
Read more here: http://www.charlotteobserver.com/2012/09/21/3544722/hospital-operator-medcath-filing.html#storylink=cpy
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