American Medical Response filed a registration statement to raise $95 million by selling 3.75 million shares of stock. Existing stockholders will sell another 500,000 shares as part of the offering. The Boston-based company completed its initial public offering in 1992 and has since acquired 30 additional ambulance companies. The company, whose stock trades on the New York Stock Exchange, will have 19.4 million shares outstanding after the offering. For the year ended Dec. 31, 1994, American Medical Response reported a 48% increase in pro formanet income to $15.2 million, or $1.05 per share, compared with $10.3 million, or 83 cents per share, in the previous year. Revenues rose 52% to $311.7 million.
WellCare Management Group, a Kingston, N.Y.-based managed-care company, said it intends to exercise its option to acquire New York-based Managed Care Administrators. MCA is the company engaged by WellCare to assemble a provider network in the New York City area. Terms weren't disclosed. MCA manages PrimeCare of New York and PrimeCare of Brooklyn and Queens, two physician networks comprising 450 doctors who serve 6,750 Medicaid recipients. WellCare serves 10,000 Medicaid recipients in 10 New York counties; it has total enrollment of 86,000.
Standard & Poor's Corp. has lowered its A bond rating for Suburban General Hospital in Pittsburgh to BBB+. The downgrade, affecting $1.5 million in debt, reflects declining utilization in a highly competitive market and a restrictive governmental payer mix resulting in "erratic operating performance." The New York-based credit-rating agency also lowered the rating of John T. Mather Memorial Hospital of Port Jefferson (N.Y.) to A- from A because of the hospital's poor earnings and intensifying market risk. The rating affects $20.3 million in debt.
Owens & Minor has signed a five-year distribution contract valued at $125 million with Sentara Health System. Under the contract, the Richmond, Va.-based company will take over Sentara's materials management department, warehousing and distribution. The contract about doubles its business with Sentara. Norfolk, Va.-based Sentara includes four hospitals, six nursing homes and three assisted-living centers. Owens & Minor also signed a two-year distribution contract with Promina Health System, an alliance of 10 Atlanta-area hospitals. The company anticipates sales of $20 million in the contract's first year.