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• Physicians Resource Group (Dallas) retired the company’s senior bank debt of $6.9 million. It was held by Compass Bank in Birmingham, AL. The New York Stock Exchange is seeking to de-list Physicians Resource, the company that doctors complained made accounting errors, late payments, and caused other problems.
• Shares of Pediatrix Medical Group (Fort Lauderdale, FL) rose $6.50 in late February to close at $31, following news that the firm had expanded by purchasing three doctor groups in Tacoma, WA. Terms of that sale were not disclosed. On the same day, a shareholder filed a lawsuit in the U.S. District Court for the Southern District of Florida on behalf of purchasers of Pediatrix’s stock, claiming the company issued false statements regarding its financial condition and performance. It seeks to recover damages for those who bought the stock between April 28, 1998, and Feb. 12, 1999.
• AmeriPath’s (Riviera Beach, FL) board of directors appointed James New as chairman, a position held previously by Thomas Roberts. New is the president/CEO of AmeriPath and has been a director since Jan. 1996. Prior to that, he served as president/CEO of RehabClinics, which he founded in 1991. The board also accepted the appointment of Dr. Dennis Smith Jr. as senior vice president/medical director of the company.
• The not-for-profit Miami Children’s Hospital is trying to get out of the physician practice management (PPM) business. The hospital is talking with privately-held Kelson Pediatric Partners (Hartford, CN), and a decision on whether the doctor management group will buy the PPM will come later this month, reported The Miami Herald.
• Urology Healthcare Group (UHG; Franklin, TN) intends to merge operations with Affiliated Medical Centers (AMC; Torrance, CA). AMC had planned on launching its new physician practice management initiative sometime this year until UHG approached the company about a business combination. UHG did not release details of the transaction.
• Concentra Managed Care (Boston) may revert to its old structure before the 1997 merger between CRA Managed Care and Occusystems. Welsh Carson Anderson & Stowe (New York) acquired Concentra in a $1.1 billion merger agreement with its unit, Yankee Acquisition Corp. Under the agreement, Concentra shareholders will receive $16.50 in cash for each share, giving Welsh Carson 93% of the company’s outstanding shares. An independent third-party investor will purchase the remaining 7%. Analysts expect Welsh Carson will sell off a part of Concentra and split it along the old lines.