Humana has signed a definitive agreement to acquire CareNetwork, the parent of Wisconsin Health Organization Insurance Corp., a 90,000-enrollee HMO, for $123 million. Pending approvals expected by year-end, Humana will purchase all of Milwaukee-based CareNetwork's outstanding shares and options for $25.25 per share. Louisville, Ky.-based Humana's entry into the Wisconsin market is "a natural extension of its significant presence in Chicago," the company said. Humana, with more than $3 billion in annual revenues, services about 1.8 million enrollees in HMOs and PPOs in 13 states and the District of Columbia.
Quorum Health Group, a Nashville, Tenn.-based hospital management company, has received an amended $300 million line of credit from a 10-bank syndicate. The amended line of credit includes an interest-rate margin range of .88% to 1.50% over the London Interbank Offered Rates, down from its previous credit line of 1.75% to 2.50% over the London rates. In addition, the term of the agreement has been extended for one year to Sept. 30, 2001. The company has about $200 million available under the credit line. An estimate of savings from the lower interest rates wasn't available because it will depend on how much the company borrows, officials said.
Premier Health Alliance received $100,000 from Burroughs Wellcome Co. to support efforts to prevent medication errors. Premier, a Westchester, Ill.-based hospital alliance, works with manufacturers to improve the naming, labeling and packaging of drugs through its Medication Safety Initiative. For example, in response to its concerns, some manufacturers are making more drugs available in pediatric doses, Premier said. Burroughs Wellcome is the U.S. subsidiary of London-based drugmaker Wellcome PLC.
AmeriSource has won pharmaceutical distribution contracts valued at $65 million from the Department of Veterans Affairs. It will distribute drugs to VA hospitals in northeastern, central and northwestern states. AmeriSource is now one of the VA's largest contractors, delivering about $500 million in products to VA facilities each year. The Malvern, Pa.-based company distributes pharmaceutical, health and beauty-care products to more than 16,000 customers in 48 states.
Univax Biologics has raised $21.6 million through a sale of 4 million shares to institutional investors. The company will use the net proceeds to pay for research, the construction of new facilities, and marketing and promotions. Univax has about 17 million shares outstanding after the offering. The Rockville, Md.-based company is developing vaccines and antibodies to stimulate the immune system.
Prime Medical Services' board has approved the repurchase of 600,000 shares of the company's stock, which is traded over the counter. The Austin, Texas-based company provides lithotripsy services to 60 hospitals in 12 states with eight mobile and two stationary lithotripters. Ken Shifrin, Prime's chairman, said the board believes the stock is undervalued.