TORONTO, July 28, 2011 /CNW/ - With reference to the press release dated June 9, 2011, Centric Health Corporation ("Centric Health" or the "Company") (TSX: CHH), Canada's leading diversified healthcare services company, today announced that it has concluded a purchase agreement pursuant to which the existing arrangement between Centric Health, GHIS Capital Inc. ("GHIS Capital") and Alegro Health Partners, Inc. ("AHP") will be terminated effective July 31, 2011 (the "AHP transaction").

AHP was established in 2007 as a wholly-owned subsidiary of the Company (then Alegro Health) in order to facilitate the expansion into new healthcare sectors in which the Company had no interests at that time. As previously described in Centric Health's Annual Financial Statements and other documents since the establishment of AHP, under the terms of the existing arrangement, which was amended in 2009, GHIS Capital had a warrant to acquire a 25% interest in AHP for $33,000 ("the AHP Warrant").  This warrant was scheduled to expire in May 2012.

Following a process involving an independent committee of the Board of Directors of Centric Health, which included a fairness opinion from a national tier audit firm related to the value of the AHP Warrant owned by GHIS Capital, the AHP transaction will be facilitated by way of Centric Health acquiring all of the shares of GHIS Capital. As consideration for such acquisition, Centric Health will issue 3.5 million treasury shares to the shareholders of GHIS Capital, which represents less than 2.5% of the issued and outstanding common shares of the Company on a non-diluted basis. The treasury shares will be issued and held in escrow for one year. Upon completion of the AHP transaction on July 31, 2011, the existing security holder agreement between Centric Health and GHIS Capital will be terminated.

"Centric Health has developed significantly over the past few years, and continues to expand through diversification of our healthcare services offerings. The AHP transaction simplifies Centric Health's corporate structure, provides clarity to stakeholders, and helps to ensure that there are no unintended conflicts going forward," said Peter Walkey, Chief Financial Officer of Centric Health. "GHIS has clearly played an extremely valuable role in the growth of the Company, and we are pleased with the timely and reasonable basis upon which the AHP transaction was negotiated."

The AHP transaction has received all necessary approvals.

About Centric Health
Centric Health's vision is to be Canada's premier healthcare company, providing innovative solutions centered on patients and healthcare professionals. As a diversified healthcare company with investments in several niche service areas, Centric Health currently has operations in medical assessments, disability and rehabilitation management, physiotherapy, surgical and medical centres, homecare, home medical equipment, specialty pharmacy and wellness and prevention. With knowledge and experience of healthcare delivery in international markets and extensive and trusted relationships with payers, physicians, and government agencies, Centric Health is pursuing expansion opportunities into other healthcare sectors to create value for all stakeholders with an unwavering commitment to the highest quality of care. Centric Health is listed on the TSX under the symbol CHH. For further information, please visit www.centrichealth.ca / www.lifemark.ca / www.medichair.com. Centric Health's strategic advisor is Global Healthcare Investments & Solutions, Inc. ("GHIS") (www.ghis.us). GHIS and entities controlled by shareholders of GHIS are currently the largest shareholders of Centric Health.

This press release contains statements that may constitute "forward-looking statements" within the meaning of applicable Canadian securities legislation.  These forward-looking statements include, among others, statements regarding business strategy, plans and other expectations, beliefs, goals, objectives, information and statements about possible future events. Readers are cautioned not to place undue reliance on such forward-looking statements. Forward-looking statements are based on current expectations, estimates and assumptions that involve a number of risks, which could cause actual results to vary and in some instances to differ materially from those anticipated by Centric Health and described in the forward-looking statements contained in this press release. No assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur or, if any of them do so, what benefits Centric Health will derive there-from.