MedCath will develop new hospital
MedCath (Charlotte, North Carolina) reported development plans for a new 105 bed capacity general acute care hospital in Kingman, Arizona. Construction of the roughly 200,000 square foot Hualapai Mountain Medical Center is expected to begin early calendar 2008 and is anticipated to be completed in the fall of 2009. Upon its opening, the hospital plans to have 72 beds in service and shelled space for 33 additional beds to support future growth. The hospital’s name reflects its proximity to the Hualapai Mountains, a local landmark.
The hospital will be developed jointly with local physicians who collectively will own approximately 21.9% of the limited liability company that will own the hospital, with MedCath owning about 78.1%. The hospital will provide mostly general acute care services specifically focusing on high acuity services needed by the growing population of Kingman, Arizona and northern Arizona.
MedCath is a healthcare provider focused on high acuity services with the diagnosis and treatment of cardiovascular disease being a primary service offering.
Merge to correct error in revenue
Merge Technologies, doing business as Merge Healthcare (Milwaukee), a provider of medical imaging software and services, said that it will be required to correct an error in how it has recognized revenue from certain software and maintenance contracts dating back to 2004 and earlier and that the company was notified that the company’s common stock is subject to delisting from the NASDAQ Global Market.
The company has reviewed its method of recognizing revenue from certain contracts that contain both a license of software and related maintenance and support. The company has now determined that the previous accounting for the revenue is in error and will require restatement of previously issued financial statements. While the company’s management and audit committee cannot at this time quantify the impact of the restatement, the company will be required to restate its audited financial statements for the years ended Dec. 31, 2004, 2005, and 2006, as well as other financial information included in the company’s annual report on Form 10-K for the year ended Dec. 31, 2006 and the unaudited financial statements included in its quarterly report on Form 10-Q for the quarter ended March 31, 2007 to reflect the proper accounting treatment.