STAT Healthcare, a Houston-based manager of hospital emergency rooms, agreed to merge with AmHealth Corp. San Antonio-based AmHealth is the privately held operator of a comprehensive diabetes disease management system in the Rio Grande Valley of southern Texas. The merger will be accounted as a pooling of interests. STAT will issue 11.2 million new shares of common stock in exchange for AmHealth. For the quarter ended Sept. 30, 1995, the companies had combined net income of $778,000 on revenues of $6.4 million.
Drugmaker Glaxo Wellcome and Physician Computer Network, a medical practice management software vendor, have formed a joint venture to develop information technology and services to improve clinical outcomes. The companies will contribute at least $50 million of capital to the venture. It will be operated independently of Glaxo and PCN, and its products will be open to all drug companies. Glaxo is based in Research Triangle Park, N.C., and PCN is headquartered in Morris Plains, N.J.
A 50-50 partnership of Value Behavioral Health and FHC Options has been awarded a three-year Medicaid mental health services contract by the Massachusetts Office of Health and Human Services. The companies declined to place a value on the deal, but claims volume under the contract is estimated at more than $150 million annually. FHC Options is the managed-care subsidiary of FHC Health System, a Norfolk, Va.-based system of 21 hospitals. Value Behavioral Health, a subsidiary of Avon, Conn.-based Value Health, is the nation's largest provider of managed mental health services. Under the Massachusetts contract, the partnership will provide mental health and substance-abuse treatment administrative services to 430,000 Medicaid recipients and state Department of Mental Health clients.
Champion Healthcare Corp. has acquired Select Health Systems, Salt Lake City. Terms weren't disclosed. Select owns home healthcare agencies in Salt Lake City and Provo, Utah, that generated $5.3 million in revenues last year. Champion, a Houston-based hospital chain, owns two hospitals in the Salt Lake City market.
Standard & Poor's Corp. has placed the D rating on Jackson Park Hospital Foundation's $11.8 million of hospital revenue bonds on CreditWatch with positive implications. The New York-based credit-rating agency said the rating on the bonds, issued for Chicago-based Jackson Park Hospital, was placed on CreditWatch based on news from the bond trustee that a plan for curing the default will be reached, pending bondholders' approval of certain conditions. The bonds have been in default since 1992. Meanwhile, Standard & Poor's raised its rating on $14 million of bonds issued for Metropolitan Hospital in Grand Rapids, Mich., to A- from BBB+. One reason for the upgrade is the hospital's large, loyal base of primary-care osteopathic physicians, the agency said. It also raised its rating on $43.4 million of Charlton Memorial Hospital's revenue bonds to A from A-. The upgrade reflects the Fall River, Mass., hospital's dominant market position, improved operating performance and good liquidity, the agency said.