Pacific Physician Services' net income increased 29.4% to $2.2 million, or 17 cents per share, for the second quarter ended Jan. 31, compared with $1.7 million, or 13 cents per share, in the year-ago period. Operating revenues grew 41.9% to $74.8 million. The company said 87% of the increase in net operating revenues was attributable to new acquisitions of medical groups. For the six months, net income grew 26.5% to $4.3 million, or 32 cents per share, compared with $3.4 million, or 26 cents per share, in the year-ago period. Operating revenues increased 55% to $143.2 million. The Redlands, Calif.-based company organizes and manages medical groups that provide prepaid care to about 299,000 enrollees in more than 15 HMOs. Enrollment was up 9.5% from January 1994.
National Verification Systems, Marietta, Ga., and St. Paul, Minn.-based Eltrax Systems have formed a partnership to take NVS' VeriQuest system nationwide. VeriQuest provides electronic access to patient eligibility information. Payers in the system include Aetna, Cigna, John Hancock, Metropolitan Life, PacifiCare and Prudential. The system has been implemented in several Georgia hospitals and is targeted for initial expansion in Florida, Illinois, Minnesota, Ohio, Pennsylvania and Texas. The partnership with Eltrax Systems gives NVS access to a nationwide distribution system; Eltrax gets an opportunity to market its patient information card system.
Capstone Capital Corp. said it has acquired HealthSouth Great Lakes Rehabilitation Hospital, a 108-bed facility in Erie, Pa., in a $14.5 million transaction. Birmingham, Ala.-based HealthSouth Corp. will continue to operate the facility under a long-term lease. Richard M. Scrushy, HealthSouth's chief executive officer, is chairman of Capstone, a Birmingham-based real estate investment trust. Separately, Capstone recently announced the completion a $50 million public offering of convertible subordinated notes. The notes were underwritten by Smith Barney, PaineWebber and J.C. Bradford & Co. Proceeds will be used to reduce current borrowings against the REIT's line of credit. Capstone's portfolio includes 34 healthcare properties in 12 states.
CIS Technologies, Tulsa, Okla., in partnership with Stamford, Conn.-based GE Capital, has launched a new service called Precision Funding to help healthcare providers better manage current assets and improve liquidity. Precision Funding provides access to cash to finance working capital needs, fund acquisitions or capital expenditures and cover temporary cash-flow disruptions. Healthcare providers using CIS' electronic claims management system can use their accounts receivable as collateral to create revolving lines of credit provided by GE Capital. GE will advance up to 85% of eligible receivables up to 150 days old.