Montgomery Hospital, a 70-bed psychiatric facility in Westland, Mich., closed in November. Its owner, Detroit-based Michigan Health Care Corp., which filed for Chapter 11 bankruptcy in March, cited low occupancy. To save money, Michigan Health Care also closed three walk-in clinics and moved its corporate offices into Michigan Hospital and Medical Center in Detroit, which it owns. According to court records, the hospital had assets of $14.9 million and liabilities of $15.6 million.
The number of computed tomography and magnetic resonance imaging procedures performed rebounded in 1994 after falling slightly in 1993 during the debate over national healthcare reform. Hospitals and other providers performed an estimated 19.4 million CT exams in 1994-6.5% more than in 1993, according to a new study by Technology Marketing Group. The number of MRI exams, meanwhile, rose 6.4% to 8.3 million. "Given cost pressures on healthcare, it appears positive for these technologies that volume growth has resumed," said John Vanden Brink, TMG managing partner. "It would indicate that the medical community has given a vote of confidence to the value of these examinations." TMG, based in Des Plaines, Ill., is a marketing research and development firm. Its figures are projected from a survey of 4,505 CT and 3,312 MRI sites.
Less than a month after it went public, the stock price of IDX Systems Corp., a Burlington, Vt.-based healthcare information systems vendor, increased more than 75% in trading on the NASDAQ system. IDX sold about 4.6 million shares in an initial public offering of stock at $18 a share on Nov. 17. That exceeded the anticipated range of $15 to $17 mentioned when the company filed its registration statement at the end of October. The first NASDAQ trade was made at a price of $23.25. As of the middle of last week, it had traded as high as $31.75. The company said it plans to use the proceeds for general corporate purposes, including increasing its cash balance and working capital for future growth. IDX develops and markets information systems to physician groups and hospitals. It said its current client list includes about 67,000 physicians at 1,000 sites, including 190 large physician group practices and 100 hospitals.