SOURCE: University General Health System, Inc.

University General Health System, Inc.

May 10, 2011 12:55 ET

University General Health System, Inc. Acquires Interest in Mainland Ambulatory Surgery Center

HOUSTON, TX--(Marketwire - May 10, 2011) - University General Health System, Inc. (PINKSHEETS: UGHS) today announced that it has completed the acquisition of a minority interest in ASP of Dickinson, LLP (d/b/a Mainland Surgery Center), with an exclusive right to acquire the balance of the equity under certain terms and conditions. The transaction included a Management Services Agreement with UGHS Management Services, Inc., a wholly-owned subsidiary of University General Health System, Inc. Mainland Surgery Center's revenues in 2010 approximated $1.2 million, and revenues are expected to increase significantly under this new ownership and management structure.

"We are proud to become part of University General Health System, and to partner with University General Hospital as part of its expanding regional health care network. This represents an exciting opportunity for our physician partners and patients," stated H. Keith Pinchot, M.D., Managing Partner of Mainland Surgery Center.

"This acquisition represents another step towards the integrated and diversified delivery system that serves as the cornerstone of our strategic plan," stated Hassan Chahadeh, M.D., Chairman and Chief Executive Officer of University General Health System, Inc. "The outstanding quality of care and level of physician involvement at Mainland Surgery Center was the paramount reason for our acquisition. We anticipate additional acquisitions that will support revenue and earnings growth for our Company in the near future."

University General Health System, Inc.

University General Health System, Inc. ("University General") is a diversified, integrated, multi-specialty health care provider that delivers concierge physician- and patient-oriented services by providing timely, innovative health solutions that are uniquely competitive, efficient and adaptive in today's health care environment. University General currently operates one general acute care hospital near the Texas Medical Center in Houston, one free-standing emergency room, and one ambulatory surgery center, with plans for additional acquisitions in 2011 and future years.

Forward-Looking Statements

The information in this news release includes certain forward-looking statements that are based upon assumptions that in the future may prove not to have been accurate and are subject to significant risks and uncertainties, including statements related to the future financial performance of the Company. Although the Company believes that the expectations reflected in the forward-looking statements are reasonable, it can give no assurance that such expectations or any of its forward-looking statements will prove to be correct. Factors that could cause results to differ include, but are not limited to, successful execution of growth strategies, product development and acceptance, the impact of competitive services and pricing, general economic conditions, and other risks and uncertainties described in the Company's periodic filings with the Securities and Exchange Commission.

Contact Information

  • For Additional Information, Please Contact:

    RJ Falkner & Company, Inc.
    Investor Relations Counsel
    (830) 693-4400