TAMPA, Fla.-A group of physicians and other investors has signed a letter of intent to purchase 200-bed Gulf Coast Hospital and Orthopaedic Institute in St. Petersburg for an unspecified amount. Gulf Coast, a for-profit hospital owned by St. Petersburg (Fla.) Health Management, has been financially struggling since last year when several surgeons left the hospital, said Administrator Dino Cagni. Financial information was unavailable. Last December, Gulf Coast laid off 50 of its 200 employees as its census dipped to fewer than 10, Mr. Cagni said. "We are starting to add people now that the census is picking up again," he said. Gulf Coast, which is licensed for 200 beds, is operating 50 beds with a daily census of about 25, Mr. Cagni said. "We are still losing money, but business has been picking up a little." The physician-led group, which is called First Florida Medical, includes 71 physicians, with another 30 to 50 who may join later, said Sherry Sacino, the group's spokeswoman. "We want to be a true community hospital that is managed and owned by doctors. Most hospitals are owned by insurance companies and run by lawyers and accountants," she said. The physicians plan to change the name of the hospital. She declined to comment on the purchase offer. St. Petersburg Health Management is a subsidiary of a group of former Humana executives based in Brentwood, Tenn.
RICHMOND, Va.-Virginia hospitals and nursing homes derived 7% of their total revenues last year from affiliated organizations, such as subsidiary companies, according to the Virginia Health Services Cost Review Council's latest healthcare commercial diversification report. The report is based on financial data from 384 hospitals and nursing homes and the 235 affiliated organizations they operate. In the fiscal year ended June 30, 1993, the hospitals and nursing homes earned $358.4 million on total revenues of about $10 billion. The 7% of revenues from affiliated organizations amounted to $759.4 million. That's the same percentage earned by the affiliates in fiscal 1992, the report found.