NSH Acquires Interest in Coastal Bend Surgery Center

CHICAGO — National Surgical Hospitals - owner, operator and developer of surgical hospitals and surgery centers in partnership with local physicians - acquired a 49 percent interest in CoastalBendSurgeryCenter in Corpus Christi, Texas.

Majority ownership in the facility, which was established 20 years ago, remains with 55 physician partners.

The 26,000-square-foot multi-specialty surgery center, which opened in 2004 to replace the previous facility, contains six operating rooms, two treatment rooms, and currently completes about 12,000 cases per year.

Related to this investment, NSH will build a 63,000-square-foot surgical hospital adjacent to the surgery center, focused on orthopedic and other specialties, consistent with the company's strategic focus.

The new hospital, which will be the company's 15th surgical hospital nationwide and the fifth surgical hospital in Texas, will include four operating rooms and 33 beds and is expected to open mid-year 2009.

Commenting on the announcement, John G. Rex-Waller, chairman, president and CEO of NSH, says, "We are very pleased to announce this agreement, which immediately expands our presence in Texas and positions us to add another specialty hospital to our operations in the near future. This partnership reflects a continuation of our core strategy to help local physicians establish specialty surgical hospitals that provide patient-friendly, efficient and cost-effective care in their communities. Currently, we have three other surgical hospitals under development, and one other existing surgery center is being considered for conversion into a hospital. We are indebted to our new and existing physician partners, who through their insight and inspiration, continue to play a key role in our development and the success we have achieved as we expand our business."

Commenting on the agreement, Dr. Michael Mintz, managing partner for the physician group, says, "I believe this partnership will advance our efforts to create a first-class surgical hospital. With a staff trained and focused on the specific types of surgery that will be performed here, and without the scheduling distractions and interruptions that quite naturally occur in general acute care hospitals, the surgeons utilizing this facility will be able to handle their caseload with greater efficiency. We think NSH, with its skills in development, management, operations, and marketing, will provide invaluable leadership to this venture that will help us achieve our mission. Of course, our patients are the real beneficiaries here, as this specialized focus will make for a better overall hospital experience."

National Surgical Hospitals has operational surgical hospitals located in Arizona, Idaho, Michigan, New Mexico, North Carolina, Texas, Utah and Wisconsin. NSH has operational orthopedic-focused surgery centers located in Arizona, California, Michigan and Texas.

Source: National Surgical Hospitals