Portland, Ore.-based Brim Healthcare announced last week that Edward Schott is the company's new chief operating officer. Mr. Schott, 50, was senior vice president of the managed-care division of St. Mary's Health Care Corp. in Reno, Nev., for the last two years. Prior to that, Mr. Schott was a managed-care executive from 1986 to 1992 in Delaware where he operated independent practice associations and staff-model HMOs. Mr. Schott's responsibilities include overall operational performance and growth of Brim, which manages 61 acute-care hospitals, including five that are owned. Mr. Schott replaced the late Gerald Sjobeck.
HMSS, a Houston-based provider of home and alternate-site therapies, signed an agreement with Gulf Coast Provider Network to be the exclusive provider for ancillary healthcare services for Gulf Coast's hospital network. Terms of the agreement weren't released. However, the deal is expected to generate about $1 million in annual revenues for HMSS. Gulf Coast is a provider network that includes 14 suburban hospitals and physician practices in the Houston metropolitan area. Included in the network are nine Houston hospitals owned by Columbia/HCA Healthcare Corp. The deal is part of HMSS' strategy to develop and market alternative services and products for healthcare networks and managed-care providers, the company said. HMSS will provide home infusion therapy and home healthcare services, including physical therapy, occupational and speech therapies, to the network. HMSS, a division of Newport Beach, Calif.-based Secomerica Co., provides ancillary services and products through 30 locations nationwide.
The Michigan Cancer Foundation, Meyer L. Prentiss Comprehensive Cancer Center, the Detroit Medical Center and Wayne State University signed a collaborative agreement last week to merge their cancer programs. With nearly $175 million in assets, the new organization will have a budget of $57 million and combine cancer education, public information programs, community outreach, research and patient care. The agreement will allow each of the four organizations to share equipment personnel and accelerate translation of laboratory research in patient-care settings.
Mariner Health Group, a Mystic, Conn.-based subacute-care operator, has purchased the assets of Legend Medical Services for $24 million in cash, the company said last week. Legend, which is based in Pittsburgh, owns and operates three nursing facilities in Pittsburgh; Toledo, Ohio; and Fort Wayne, Ind. The deal, which is subject to regulatory approval, is expected to be completed early in the third quarter. The move allows Mariner to expand its geographic coverage to Midwestern metropolitan markets, said Arthur Stratton Jr., M.D., Mariner's chairman. Mariner provides subacute-care services through 25 freestanding facilities and three subacute-care units within acute-care hospitals nationwide.
Eli Lilly and Co. said it will form a new company, Guidant Corp., with five divisions that make cardiovascular equipment and minimally invasive surgical systems. The divisions brought in about $800 million of Lilly's 1993 revenues of $6.5 billion. In January, Indianapolis-based Lilly announced plans to divest its nine device and diagnostic divisions so it could focus on its core pharmaceutical businesses. Lilly still is evaluating buyers for its divisions IVAC Corp., Hybritech, Pacific Biotech and Physio-Control Corp. It plans to sell 20% of Guidant Corp. shares in an initial public offering this fall. It would distribute the remaining shares as a tax-free dividend to shareholders or offer them in exchange for current Lilly shares.
In the fifth clinic affiliation expected to be completed this year, Nashville, Tenn.-based PhyCor reached an agreement in principle to acquire the assets of an unnamed Michigan multispecialty physician clinic. Terms of the transaction with the 122-physician group were not disclosed.