A Medical Device Daily

Continucare (Miami) reported completing its previously disclosed purchase of Miami Dade Health Centers (MDHC) and its affiliated companies. Continucare said the purchase makes it the largest staff model medical provider in South Florida and one of the largest in the state.

At closing, Continucare issued 20 million shares of its common stock and paid $5 million in cash. The terms of the agreement also call for Continucare to pay another $1 million on the first anniversary of the closing and to make additional cash payments based on the resolution of certain post-closing matters.

Continucare said it expects the transaction, first disclosed last month (MDD, Sept. 20, 2006) to be accretive to earnings during the first full year of combined operations.

Continucare provides primary care physician services on an outpatient basis through a network of medical facilities and independent physician affiliates (IPAs) in Florida.

In other dealmaking activity:

• Senior Housing Properties Trust (SNH; Newton, Massachusetts) said it has acquired three senior living properties for $31.2 million. Simultaneously, SNH said it entered a long-term lease arrangement with Five Star Quality Care (also Newton) for these same properties.

The rent payable by Five Star to SNH for these three communities will be $2,621,000 per year, creating an initial return of 8.4% per annum, plus future rent escalators based upon increases in gross revenues at the facilities.

The communities will be added to a combination lease for 109 communities from SNH to Five Star, which has a current term ending in 2020, plus tenant renewal options thereafter.

The three properties that SNH has acquired have a total of 304 living units.

SNH is a real estate investment trust that owns 196 healthcare and senior living properties in 33 states.

• Pacer Health (Miami Lakes, Florida), an owner-operator of acute care hospitals, medical treatment centers and psychiatric facilities in the Southeastern U.S., has agreed to sell its 60% ownership in Southpark Community Hospital (SCH; South Lafayette, Louisiana) to Southpark Holdings II, a Louisiana company, for $2 million.

Pacer Health also terminated its management agreement with SCH for a separate consideration of $1 million, bringing the sale total to $3 million.

The sale is pending completion of documentation, required filings, and governmental approvals.

• Signature Hospital (Dallas) reported filing a certificate of need application for the acquisition of St. Joseph’s Hospital (Parkersburg, West Virginia) from LifePoint Hospitals (Brentwood, Tennessee). The companies executed an agreement for the acquisition on Sept. 24.

St. Joseph’s Hospital is licensed for 325 beds and provides medical services to the area, including centers of excellence in neurosurgery, cardiac services, and orthopedic surgery. St. Joseph’s will be the fourth hospital acquired by Signature since its founding last year.