Premier Anesthesia said it will sell as much as $20 million in receivables in the next three years to National Century Financial Enterprises. Atlanta-based Premier will use the initial sale's proceeds of $13 million to reduce an existing credit line and for working capital. Under the agreement, Premier will collect the receivables on National's behalf. Premier manages hospital anesthesia departments and group practices. It expects to take a charge of as much as $24 million against fourth-quarter results (Feb. 7, p. 26), primarily for last year's restructuring of its National Pain Institute subsidiary. The company has sought financing for acquisitions and to provide working capital for 1994's first quarter. To raise money, Premier has privately placed $720,000 in stock and obtained short-loans of as much as $2.5 million from company Chairman and Chief Executive Officer Richard Jackson.
Sierra Tucson, a Tucson, Ariz.-based psychiatric and substance-abuse treatment provider, reported a net loss of $5 million, or 59 cents per share, for the fourth quarter ended Dec. 31, 1993, compared with a net loss of $91,101, or 1 cent per share, in the year-ago period. Revenues dropped 38% to $4 million. The company closed two of its three treatment facilities and now operates a 281-bed Master Treatment Center in Tucson. The loss stemmed from closure of an adolescent treatment facility, severance agreements with former officers and a reserve created for a class-action lawsuit pending against the company. For the year, Sierra Tucson reported a net loss of $10.8 million, or $1.27 per share, compared with net income of $365,506, or 4 cents per share, in the previous year. Revenues dropped 35% to $23.4 million.
Vencor, a Louisville, Ky.-based chain of extended-care hospitals, reported that net income rose 34% to $6.8 million, or 39 cents per share, for the fourth quarter ended Dec. 31, 1993, compared with $5.1 million, or 28 cents per share, in the year-ago period. Revenues rose 38% to $80.3 million. For the year, the chain reported a 32% increase in net income to $22.9 million, or $1.27 per share, compared with $17.4 million, or 95 cents per share, in the previous year. Revenues increased 31% to $282.2 million.
Child Health Corp. of America has renewed a five-year contract, valued at more than $425 million, with Baxter International. Under the agreement, Deerfield, Ill.-based Baxter will provide the alliance's members with a wide variety of products and services, including intravenous solutions and related supplies, surgical instruments and distribution. Shawnee Mission, Kan.-based Child Health represents 32 stand-alone children's hospitals in 18 states. Each of its members is affiliated with a university teaching center.
Southwest Physician Associates plans to raise $3 million to $5 million through an equity offering among its 600 physician members. One of the largest independent practice associations in Texas, the Dallas-based physician group has filed a registration statement with the state of Texas for SPACO Management Co. The company was recently formed to provide management, marketing and administrative services to physician groups and clinics. SPACO executives said the equity capital will enable the company to develop a healthcare delivery system and manage physician practices. The company also intends to provide claims payment and quality management services to help physicians compete for risk contracts. Physician group members practice primarily at Baylor University Medical Center but also are on the medical staffs of other hospitals in the Dallas area.