PPM/MSO News
PPM/MSO News
• Continucare Corp. (Miami) has filed for a five-day extension with the Securities and Exchange Commission (Washington) to report its results for 1Q99 ended March 31. The company expects to report a net loss of about $18.2 million, including a one-time loss of about $11 million for the write-down of assets held for sales to their net realizable value. The 4-year-old company has not been doing well in the past few years, reported the Miami Herald. It reported a $15 million loss last year, and the firm failed to make a semi-annual interest payment of $1.8 million on its 8% notes due in 2002. It is in discussions to restructure the deal. Its stocks have fallen to 25 cents. The company plans to sell unrelated services, dealing with medical testing, home health, and radiology, and it will focus on its network of 200 doctors and its 23 profitable outpatient rehabilitation centers. "The physician practice management business is a tough business right now," Chairman Charles Fernandez told the Herald. "But we are looking to survive."
• FPA Medical Management (San Diego) plans to sell its operations for $108.2 million under an agreement with major creditors on a reorganization plan. Bankruptcy court approved an increase in debtor-in-possession financing to $58 million from $55 million, reported Dow Jones Business News. FPA expects the plan to become effective this month. Humana (Louisville, KY) will acquire the operations of 50 medical centers from FPA for $13.5 million, effective June 1.
• MedPartners (Birmingham, AL) has agreed to sell five of its physician groups in California. The groups are located from San Joaquin County to the High Desert in the southern part of the state. They include Eaton Medical Group in Tracy and Manteca; U.S. Family Medical Care Medical Center in Montclair; Inland Empire Medical Group in the Riverside area; Cassidy Medical Group in San Diego; and High Desert Primary Care Group in Hesperia and Victorville. The company would not say who the buyers were or how much they were paying. A bankruptcy court judge must approve the sales. MedPartners plans to sell all of its California operations. It is quitting the physician practice management business and focusing on its pharmacy benefits division.
• Physicians’ Specialty Corp. (Atlanta) has acquired a 12.5% equity interest in Marietta Outpatient Surgery (Marietta, GA), a Columbia/HCA Healthcare managed limited partnership operating an ambulatory surgery center. Introducing and developing ancillary services in existing markets is among the company’s top corporate priorities, said Physicians’ CEO Richard Ballard.
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