CORAL GABLES, Fla., July 6 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) and West Virginia University Hospitals announced today that
they have signed a definitive agreement under which West Virginia University
Hospitals will acquire Ramsay Health Care, Inc.'s Chestnut Ridge Hospital, a
70 bed psychiatric facility located on the West Virginia University Campus in
Morgantown.
The purchase price is $14.8 million payable in cash. Completion of the
transaction is subject to customary closing conditions and approval by the
West Virginia Health Care Authority.
Luis E. Lamela, Chief Executive Officer of Ramsay Health Care, Inc.
stated, "We are very pleased in consummating this transaction with West
Virginia Hospitals. The final closing of this transaction and of the
previously announced transaction with Charter Behavioral Health Systems will
complete Ramsay Health Care Inc.'s transformation into a youth services
company." Mr. Lamela added, "We expect to record non-recurring losses in the
fourth fiscal quarter of 1998 as a result of these transactions and the
restructuring of the Company to reflect our new organization."
"Chestnut Ridge Hospital will become an integral part of our operation,"
said West Virginia University Hospitals President Bruce McClymonds. "Based on
our close working relationship over the past decade, we expect the transfer of
ownership to be accomplished very smoothly. The current management team and
medical staff will lead this process."
Except for historical information contained herein, the matters set forth
in this news release are forward-looking statements as defined under the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks which may cause
actual results to differ materially from those expected. Factors that could
cause actual results to differ from expectations include, but are not limited
to, West Virginia University Hospitals and Ramsay Health Care, Inc.'s ability
to close the transaction, including obtaining all necessary approvals, and
various other risks as outlined in Ramsay's Securities and Exchange Commission
filings.
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.
West Virginia University Hospitals is a private, not-for-profit
corporation that provides health care services, clinical education and
research in support of the mission of the Robert C. Byrd Health Sciences
Center at West Virginia University. It is a member institution of the West
Virginia United Health System. The Department of Behavioral Medicine and
Psychiatry of the WVU School of Medicine is located in Chestnut Ridge Hospital
and provides its medical staff.
SOURCE Ramsay Health Care, Inc.
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fax, 800-758-5804, extension 116733
CONTACT:
Isa Diaz, Vice President, Corporate
Relations, Ramsay Health Care, Inc., 305-569-4626; or Amy Johns,
West Virginia University Hospitals, 304-293-7087
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