MedCath, a Charlotte, N.C.-based provider of cardiac services, is expected to raise about $58 million in a secondary offering of 2 million shares. The company's shares are traded on the NASDAQ system. Proceeds will be used to repay debt and fund capital expenditures. MedCath, which partners with local cardiologists, recently opened a heart hospital in McAllen, Texas, and is building one in Little Rock, Ark. Underwriters for the offering are Bear, Stearns & Co., New York; Piper Jaffray, Minneapolis; Robinson-Humphrey Co., Atlanta; and Wheat First Butcher & Singer, Richmond, Va.
Neuman Distributors of Ridgefield, N.J., will buy the New Jersey Hospital Association's retail pharmacy buying cooperative, Advantage Pharmacy. Neuman is the nation's largest independent pharmaceutical wholesaler, with annual operating revenues of $1.2 billion. Advantage Pharmacy has acted as a regional group purchasing agency for pharmacies in New Jersey and five other states. More than 1,100 independent pharmacies use their collective purchasing power to bargain for low rates on prescription drugs as well as cosmetics, toiletries and candy. Lynn Banner Nemeth, executive vice president of the NJHA, said the association wants to focus its business ventures on core hospital activities. Financial terms of the acquisition were not made public.
Pioneer Healthcare has completed the acquisition of Total Concepts, an outpatient behavioral healthcare provider in Kansas City, Kan. Terms weren't disclosed. In addition, Peabody, Mass.-based Pioneer said it had assumed management of Bridge Counseling, a Las Vegas-based outpatient services company that provides employee assistance programs to several area casinos.
Housecall Medical Resources will sell 3 million shares of common stock in its initial public offering. The anticipated price is $13.50 to $15.50 per share. The company estimates net proceeds will total approximately $39.2 million, or $45.3 million if the underwriters' overallotment option is exercised in full. Merrill Lynch, Dean Witter Reynolds and Morgan Stanley & Co. are the offering's underwriters. Housecall will use the proceeds to redeem $19.7 million worth of Series A Preferred Stock, 93% of which is owned by Welsh, Carson, Anderson & Stowe. The company also will repay $18.5 million of debt. Atlanta-based Housecall is a leading provider of home health services in the Southeast. Established in July 1994, it owns 151 branch offices and manages 40 more in 15 states and the District of Columbia. The company reported net income of $697,000 for the year ended June 30, 1995, on net revenues of $84.2 million. For the six months ended Dec. 31, 1995, the company posted net income of $821,000 on net revenues of $104.6 million.
Medirisk, a privately held, Atlanta-based provider of healthcare information, said it has purchased PracticeMatch. Financial terms of the acquisition were not disclosed. St. Louis-based PracticeMatch, also privately held, provides physician profiles to more than 700 clients nationwide, including hospitals, clinics, group practices and HMOs. It will operate as a wholly owned subsidiary of Medirisk. Medirisk, which specializes in providing physician data, eventually hopes to merge its database with PracticeMatch's 70,000 physician profiles to produce physician-specific reports on cost, utilization and outcomes, said Mark Kaiser, Medirisk chairman and chief executive officer. Medirisk said it has more than 3,000 U.S. customers for its data on reimbursement and consumption patterns. The PracticeMatch deal is part of a strategic plan to broaden its healthcare database and respond to market demands.