Columbia/HCA Healthcare Corp. filed a shelf registration to issue $1.5 billion in bonds. Officials said the Nashville, Tenn.-based hospital chain will issue the bonds on an as-needed basis for general corporate purposes. The company made a previous shelf registration worth $1.5 billion and has issued nearly all those bonds. Meanwhile, the community of Ville Platte, La., is creating a new hospital district to buy 116-bed Ville Platte Medical Center from Columbia, which was required to sell the hospital as part of an agreement with the Federal Trade Commission. The newly formed hospital district is issuing about $8 million in bonds to acquire the facility, which will be leased to a new not-for-profit corporation.
Citing a need to enhance their managed-care horsepower, not-for-profits Anaheim (Calif.) Memorial Hospital and Long Beach, Calif.-based Memorial Health Services plan to merge. The 224-bed Anaheim Memorial, which will become a subsidiary of MHS, will retain a separate board of directors and control of daily operations. MHS subsidiaries now include 752-bed Long Beach Memorial Medical Center, 220-bed Saddleback Memorial Medical Center in Laguna Hills, Calif., and the University of California at Irvine (Calif.) Center for Health Education.
Healthcare America, an Austin, Texas-based hospital chain, reported a net loss of $6.6 million, or 60 cents per share, for the third quarter ended Sept. 30, compared with a net loss of $1 million, or 9 cents per share, in the year-ago quarter. Revenues grew 12% to $40.5 million. For the nine months, Healthcare America reported a net loss of $13.2 million, or $1.19 per share, compared with a net loss of $2.5 million, or 23 cents per share, in the year-ago period. Revenues grew 22% to $126.1 million. The company, which has been struggling to restructure its debt with banks, reported $1.6 million in restructuring expenses during the third quarter.
Daniel Hollander, M.D., executive dean of the University of Kansas School of Medicine, resigned last week. Hollander, 56, is the second KU Medical Center administrator to resign in a month. On Oct. 16, Glenn Potter, KU vice chancellor for hospital administration, announced his resignation, effective June 30, 1996. The resignations are believed to be related to problems in the university's heart transplant program. In May a newspaper revealed that KU patients were kept waiting for new hearts at a time when medical center doctors were declining to perform transplant surgeries, citing a lack of qualified nursing staff.
Richard M. Scrushy, chairman and chief executive officer at HealthSouth Corp., resigned from the Integrated Health Services board of directors. Scrushy said potential competition between the two companies because of the growth in IHS' post-acute services prompted his decision. He had served on the IHS board since 1988, when the company was still privately held. It went public in 1991. IHS, based in Owings Mills, Md., provides subacute care, rehabilitation therapy and several other services. Birmingham, Ala.-based HealthSouth is the nation's largest rehabilitation chain. It recently has acquired several outpatient surgery centers.
PhyCor signed an agreement with South Bend (Ind.) Clinic, a 44-physician multispecialty clinic with two locations and the only freestanding ambulatory surgery center in its market. PhyCor, a Nashville, Tenn.-based physician practice management company, agreed to acquire certain assets of the clinic and its affiliated companies and enter into a long-term service agreement effective Jan. 1.
Coastal Physician Group reported a net loss of $3.4 million, or 15 cents per share, for the third quarter ended Sept. 30, compared with net income of $7.2 million, or 32 cents per share, for the same quarter last year. Net operating revenues rose 9% to $220 million. The company said the results reflect increased medical expenses related to its capitated clinics in Florida, continued start-up expenses at its HMOs in North Carolina and New York, and lackluster performance by its hospital-based contract services division, Coastal Physician Services. For the nine months, Coastal reported a net loss of $7.6 million, or 32 cents per share, compared with net income of $16 million, or 73 cents per share, in the year-ago period. Net operating revenues rose 15% to $629 million.