PPM/MSO News
PPM/MSO News
• Nalle Clinic (Charlotte, NC) doctors, upset over falling salaries, are restructuring their contract with PhyCor, the PPM that runs the clinic. The profits at Nalle already have prompted several veteran doctors to leave the group, which includes more than 140 doctors, reported the Charlotte Observer. And four other physicians have given notice to leave the clinic next year. Clinic executives, however, say they expect only two of those four doctors to actually leave, the Observer reported. Some doctors who have announced plans to leave told the Observer that declining income was one reason for their decisions.
• Complete Wellness Centers (Washington) said it plans to relocate its corporate office from Washington to Winter Park, FL. The company said the move will consolidate its Washington and former West Palm Beach, FL, offices. Complete Wellness said the greatest concentration of affiliated clinics are in the central Florida area and added that the relocation will improve communication throughout the company.
• MedPartners’ (Northbrook, IL) Caremark unit signed a five-year contract to provide mail and specialty therapeutic pharmacy services to Oxford Health Plans’ (Norwalk, CT) members. Caremark said it will distribute pharmaceutical products to Oxford physicians and members in Connecticut, New Jersey, and New York. The contract, which is being entered concurrently with Caremark’s purchase of certain assets of Oxford’s Direct Script mail service unit, is expected to close in October, MedPartners said. The addition of Oxford’s plans increases Caremark’s total annual mail service volume to nearly 13 million prescriptions.
• Tessa Complete Health Care (Oakbrook Terrace, IL) entered into a proposed merger agreement with Medical Options (Laguna Hills, CA). The signing of the merger agreement has been set for this week and will be subject to the approval of the shareholders of both companies, Tessa said. Medical Options owns seven chiropractic clinics in California, with estimated annual revenues of $4.3 million. Under the terms of the merger, the principals of Medical Options will arrange for additional clinics to be acquired by the merged entity. They will be responsible for providing up to an additional $10 million of net revenues to the merger in this manner. Medical Options will also be responsible for providing at least $6 million of new equity and a new credit facility amounting to $12.5 million. Tessa reported FY98 ended Dec. 31 revenues of $16 million, an increase of 651% from FY97 revenues of $2.1 million. The increase was due to the acquisition of the assets of 37 clinics and their integration into a network of clinics operating in eight states. Tessa recorded a net income of $902,315, 6 cents per share, compared to a FY97 net income of $186,226, 5 cents per share.
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