• Complete Wellness Centers (Washington) will increase the size of its board of directors from nine members to 15. There are currently seven members serving on the board. In conjunction with the resolution, the board of directors has voted to add eight new members on Jan. 4. The eight new directors, representing a majority of the board, are affiliated with Wexford Management, Wexford Spectrum Investors, and Imprimis Investors (collectively known as Wexford). Complete Wellness Centers is a multidisciplinary physician practice management company and manages 82 Complete Wellness Medical Centers.
• Med-Emerg International (Ontario, Canada) reported a net income loss of $44,000 compared for 3Q98 ended Sept. 30, an improvement over its 3Q97 net income loss of $108,007. Med-Emerg had net revenues for 3Q98 of $3.9 million, an increase compared to its 3Q97 net revenues of $2.7 million. Med-Emerg is pursuing its consolidation of physician practice management across Canada by assembling a team of healthcare specialists and forming strategic alliances with partners to develop its chain of Family Health/Urgent Care Centers. "Management believes the company is well positioned to capitalize on the significant opportunity through rapid consolidation of physicians into group medical practices," said Carl Pahapill, president/CEO.
• MedPartners (Birmingham, AL) has entered into a definitive agreement for the sale of its government services business to America Service Group (Brentwood, TN) for about $67 million. The government services businesses, one of the two businesses that comprise MedPartners’ contract services division, provides hospital-based physician management services and medical services to correctional institutions and other government organizations. The transaction should be completed by the end of January. Bowles Hollowell Conner & Co., a unit of First Union Capital Markets Group, advised MedPartners on the transaction. In November, MedPartners announced that it plans to separate from its physician practice management and contract services divisions to focus on its pharmacy benefits management division, Caremark.
• BMJ Medical Management (Boca Raton, FL) and five of its subsidiaries have filed for Chapter 11 bankruptcy protection. The filing was necessitated by, among other things, company officials said, actions by two medical groups in Florida affiliated with the company that "unjustifiably withheld monies due the company related to the collection of the company’s accounts receivable. The company has filed a complaint and a motion for a temporary restraining order as part of its efforts to recover these funds, continue collection of accounts receivable and compel compliance by affiliated medical groups with their respective obligations under their management services agreements." Also, the company’s board of directors has elected Charles Sweet to serve as president/CEO, succeeding Donald Lothrop, who will remain on the board. Sweet joined BMJ in May and has been COO/chief information officer. BMJ is a single specialty physician practice management company focused on musculoskeletal care.
• Tessa Complete Health Care (Oakbrook Terrace, IL) has acquired the DBA Progressive Chiropractic Clinic (Portland, OR). The company has merged the practice into its existing Mountainview, OR, clinic and Alfred Peter, clinic director of DBA Progressive, will be principal director at Mountainview. Terms were not disclosed. Tessa provides physician practice management to multispecialty clinics that focus on conservative, noninvasive rehabilitative care.
• PhyMatrix (West Palm Beach, FL) posted revenues for 3Q98 ended Oct. 31 of $83 million, compared to revenues of $91.5 million for 3Q97. PhyMatrix also posted a net loss for 3Q98 of $9.1 million, a loss of 27 cents per share, compared to net income of $5.4 million, 18 cents per share, for 3Q97. In August, PhyMatrix announced plans to divest itself of its physician practice management business and will restructure itself to focus on clinical research, pharmacy management services, and network provider service.
• Shareholders of IntegraMed America (Purchase, NY) approved a 1-for-4 reverse stock split. The company specializes in fertility and assisted reproductive technology services. It manages a nationwide network of nine reproductive science centers with 21 locations in nine states and the District of Columbia