Medaphis Corp., an Atlanta-based provider of business management services, said it has acquired certain assets of Datamedic Corp.'s managed practice division for $5 million. The purchase includes some of the New York and California operations of Hauppauge, N.Y.-based Datamedic, a privately held company that provides billing and accounts receivable management services to hospital-affiliated physicians. The acquisition was funded through cash on hand. According to Medaphis, Datamedic had $600,000 in net income on revenues of $5 million last year. "This transaction increases our physician operations in several of our existing markets," said Randolph G. Brown, Medaphis' chief executive officer.
Standard & Poor's Corp. downgraded ratings on two healthcare credits. It lowered to BB from BBB- the rating on $52.6 million of debt issued by Norwood (Mass.) Hospital, reflecting "the inability to stem operating losses, sharply reduced interim financial performance, weakened liquidity and current-year utilization declines." It also downgraded to BBB+ from A the rating on Pittsburgh-based Harmarville Rehabilitation Center's $9.7 million bond refunding because of concerns about competition and reimbursement pressures.
HealthSouth, the nation's largest rehabilitation hospital chain, has completed the sale of $350 million in subordinated notes. The notes were issued to finance HealthSouth's purchase of 28 hospitals from National Medical Enterprises, Santa Monica, Calif. Birmingham, Ala.-based HealthSouth sold $100 million in 5% convertible subordinated notes and $250 million in 9.5% senior subordinated notes. The company now owns 45 rehabilitation hospitals and 172 outpatient rehabilitation centers in 31 states. It also has two hospitals under construction.
AmeriHealth, an Atlanta-based chain of 12 hospitals in five states, has retained Goldman, Sachs & Co., New York, as its financial adviser. The company said recently it may sell assets, merge the company or find a new equity partner because it needs to refinance its debt (April 11, p. 6). The company also postponed its annual shareholder meeting, which had been set for May 24.
National Health Investors has funded a $19.1 million first mortgage loan for six nursing homes in Arizona and Colorado. The nursing homes have a total of 502 beds and are owned by subsidiaries of Greeley, Colo.-based Signature Health Care Corp. NHI, a Murfreesboro, Tenn.-based real estate investment trust, has investments in 182 healthcare facilities in 25 states.