HealthWise of America said it is negotiating with Commonwealth Physicians Services Corp. to acquire the minority interest held by its physician shareholders and other physician limited partners in HealthWise of Kentucky. The company offered no details on the potential cost of the buyout. Commonwealth Physicians is a general limited partner in the Lexington, Ky.-based HMO, which was founded in 1985. HealthWise said the physician group and other limited partners hold 37% of the HMO's stock. Nashville, Tenn.-based HealthWise of America is a publicly traded company operating HMOs in Arkansas, Kentucky, Maryland and Tennessee.
Moody's Investors Service raised its rating on Hermann Hospital's debt to A from Baa1. The upgrade reflects the Houston-based hospital's depth of services, its "solid and increasing market position" and its improved financial performance and cash position, the New York-based credit-rating agency said. However, Hermann's ability to operate with an increasing debt position remains a concern. Moody's reviewed the rating in anticipation of Hermann's upcoming sale of $181 million in revenue bonds, which will be used to fund construction of an 11-story patient tower and to refund the callable portion of its Series 1986 A bonds. The bonds are expected to be sold this week.
Stockholders of Comprehensive Care Corp., a St. Louis-based chain of hospital-based and freestanding psychiatric and substance-abuse treatment facilities, approved a reverse stock split. The ratio will be determined within the next nine months but may be as much as one share exchanged for 10 shares, the company said. CompCare stock is traded on the New York Stock Exchange. The company also said that its president and chief executive officer, Richard C. Peters, has resigned. Chriss W. Street, the company's chairman, has been named interim CEO.