Procter & Gamble Co. will be assuming full ownership of MDVIP, a concierge network of 350 physicians in 28 states and the District of Columbia, increasing its ownership stake to 100% from 48%, the companies announced.
No financial terms were disclosed, and MDVIP CEO Bret Jorgensen said that the deal is expected to close by the end of the month. The deal was given clearance by the Federal Trade Commission on Dec. 11.
P&G's initial investment in the company was made in January of 2007, and Jorgensen said the initial outreach call was made by P&G to MDVIP.
In 2009, MDVIP expanded into Colorado, Delaware, Kansas and Oklahoma, said MDVIP President Darin Engelhardt, and Jorgensen noted there were no immediate plans for a growth spurt under P&G's ownership.
MDVIP has 200 employees but its physicians are not included in that number. Physicians operate independently, but cap their practices at 600 patients. The patients pay MDVIP a monthly fee of $125 to $150 or $1,500 to $1,800 annually. Physicians get a “significant portion” of that fee, Jorgensen explained.
He added that the company's executive team will not change, its headquarters will continue to be based in Boca Raton, Fla., and MDVIP will operate as an independently run but wholly owned subsidiary of the Cincinnati-based consumer and household product giant. P&G's Web site indicates it sold some $80.3 billion worth of products in 2009 with “health and well-being” items (“personal health care” included) accounting for $16.7 billion.
In time, Jorgensen said P&G may provide assistance with consumer branding and marketing, “but, largely, it will be business as usual.”
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