Abbott Laboratories won a multi-year contract to be the sole supplier of some premixed intravenous solutions, injectable drugs and anesthesia products to participants in the New Jersey Hospital Association's group purchasing program. Terms of the agreement weren't disclosed. The group purchasing arm of Princeton, N.J.-based NJHA represents more than 200 healthcare facilities. Abbott, based in North Chicago, Ill., also announced that it's created a sales division to target integrated healthcare systems. The division comprises representatives from Abbott's businesses in pharmaceuticals, nutritional products, diagnostics and hospital products.
Premier Anesthesia said it raised about $1.8 million in a private placement of 800,000 shares of its common stock. The company will use the proceeds for working capital. Atlanta-based Premier manages hospital anesthesia departments and group practices. In the past few months, the financially troubled firm has arranged various financing deals, including short-term loans from its chairman. In a $24 million restructuring earlier this year, Premier eliminated 143 jobs, or 28% of its work force, mostly at its California subsidiary, National Pain Institute (Feb. 7, p. 26).
Regency Health Services and Care Enterprises last week completed their merger after shareholders for both companies approved the $120 million deal. The stock of the newly merged company, which will go by the name of Regency Health Services, is listed on the New York Stock Exchange. The company will move its corporate offices to Tustin, Calif., from Newport Beach, Calif. After completion of the deal, Regency operates 94 healthcare facilities with 9,255 beds in four states.
Healthcare America has evicted Concept Health Group, a Seattle-based hospital management firm, from its Tustin (Calif.) Hospital Medical Center because of lease payment problems. Healthcare America, formerly called HealthVest, had leased the hospital to Concept in 1990. However, because of payment problems, HealthVest last October terminated the lease and began proceedings to take control of the hospital. The eviction was completed on March 25. Austin, Texas-based Healthcare America was the result of a merger this year between HealthVest, a real estate investment trust, and Healthcare International, a hospital management company. Healthcare America now owns and operates 11 hospitals; it owns another seven hospitals that are operated by other companies.
Mullikin Medical Centers, Long Beach, Calif., has signed a letter of intent to acquire Daly City, Calif.-based Bay Area Primary Care, a 26-physician practice operating six family and pediatric medical clinics. Terms of the agreement weren't disclosed. The transaction is the second such acquisition for Mullikin in Northern California, where it operates the former Daly City-based Serra Medical Group, a 240-physician group, and provides management services for a 100-physician independent practice association affiliated with the six-hospital Daughters of Charity Health System West in San Francisco. Mullikin is a 400-physician group practice with 53 clinics statewide.