University General Health System, Inc., a diversified, integrated multi-specialty health delivery system, today announced that it has completed the acquisition of diagnostic imaging, physical therapy and sleep clinics in Kingwood, Texas, a suburb of Houston, for a combination of stock, cash, and the acquisition of debt. The agreement was executed with Management Affiliates of Northeast Houston, LLC, d/b/a Kingwood Diagnostic and Rehabilitation Center, which represents an association of thirteen physicians and primary care practitioners, including physician assistants and nurse practitioners.

“This acquisition will contribute to the expansion of our regional network in the north Houston metropolitan area,” observed Hassan Chahadeh, M.D., Chairman and Chief Executive Officer of University General Health System, Inc. “The Company estimates that the acquired clinics should generate at least $6.5 million in annual net patient revenues, along with a projected yearly EBITDA of $2.6 million. The clinics will become hospital outpatient departments (HOPDs) of our flagship University General Hospital, which is located near the Texas Medical Center in Houston, Texas.”

“Joining University General Health System represents a significant milestone in our development of the clinics in Kingwood, and we look forward to the expansion of services for our physicians and patients that should result from this transaction,” stated Randy Butler, Chief Executive Officer of Kingwood Diagnostic Affiliates and Rehabilitation Center. “Our decision to enter into this agreement was based upon University General’s expansion strategy and its ability to provide the highest quality of care, which is paramount to our patients.”

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