Primary Health Care (ASX:PRY) has inked a deal to acquire 7 Montserrat day hospitals across Australia for $138.5 million.
The company says Montserrat will form the core of a new primary day hospital division which derives its revenue outside of the Medicare benefits Schedule.
The acquisition is scheduled to be completed in November of this year.
Primary Health says the acquisition of Montserrat is an exciting opportunity for the company particularly as growth in day hospital admissions has outpaced overnight hospital admissions over the last 10 years with the trend expected to continue.
And investors have reacted positively to the news, shares in Primary Health Care (ASX:PRY) are trading 5 per cent higher at $2.95