CORAL GABLES, Fla., July 1 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) and Atlanta, Georgia-based Charter Behavioral Health Systems,
LLC, announced today that they have signed definitive agreements under which
Charter Behavioral Health Systems, the largest operator of free-standing
behavioral facilities in the U.S., will acquire five of Ramsay Health Care,
Inc.'s psychiatric hospitals and the Company's contract management business.
As a result of the transaction, the following psychiatric hospitals will
become Charter operated facilities: Bayou Oaks in Houma, Louisiana; Coastal
Carolina in Conway, South Carolina; The Haven in DeSoto, Texas; Mission Vista
in San Antonio, Texas; and Desert Vista in Mesa, Arizona. In addition,
through this transaction Charter obtains Ramsay's contract management business
which manages the delivery of behavioral health care programs on behalf of
acute care hospitals and community mental health centers.
Completion of the transaction, which is subject to customary closing
conditions, is expected during the next 90 days.
Luis E. Lamela, Chief Executive Officer of Ramsay Health Care, Inc. said,
"We are extremely pleased with the Charter transaction because it continues to
validate our commitment to our new strategic direction which focus on the
youth services industry. The net proceeds from this transaction will be used
to repay outstanding indebtedness."
"The acquisition of Ramsay's facilities and its contract management
division complements Charter's existing operations," said, Steve Davis,
Charter Behavioral Health Systems President and Chief Executive Officer. "The
facilities fit well into our existing networks, and enable Charter to provide
a greater range of services to those communities. Further, Charter's contract
management division has been doing extremely well, managing the psychiatric
units in more than one dozen acute care hospitals. The addition of Ramsay's
operations in this area, which doubles the number of contracts, establishes
Charter as a key player in the rapidly expanding market for managed services."
Ramsay Health Care, Inc. is a provider and manager of specialized programs
and services for at-risk and troubled youth. The Company through its
subsidiary, Ramsay Youth Services, Inc., operates residential treatment
centers, group homes and other specialized youth programs. Ramsay Health Care,
Inc. also operates psychiatric facilities and manages the delivery of
behavioral health care programs on behalf of acute care hospitals and
community mental health centers.
Charter Behavioral Health Systems, LLC, is the nation's leading provider
of behavioral and addiction treatment programs. The Company's 88 domestic
facilities provide a full continuum of care, including inpatient, outpatient
and partial hospitalization programs. The company is owned equally by
Magellan Health Services, Inc. (NYSE: MGL) and Crescent Operating, Inc.
(Nasdaq: COPI).
SOURCE Ramsay Health Care, Inc.
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Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 116733
CONTACT:
Isa Diaz, Vice President Corporate Relations
of Ramsay Health Care, 305-569-4626; or Donna Wood, Vice
President Corporate Communications and Legislative Affairs of
Charter Behavioral Health Systems, 678-297-4440
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