Physician Corporation of America has agreed to sell its 40 medical centers in Florida to FPA Medical Management for $23 million.
The medical centers, under a PCA subsidiary called Physicians First, employ a network of 118 primary-care physicians and seven specialists. They are the primary-care providers for about 25% of Miami-based PCA's Florida HMO enrollees, or 82,000 people, and also provide medical services to 10,000 enrollees of other health plans.
The transaction is expected to bring $100 million in annual revenues to FPA, which is negotiating with other payers in the Florida market to render services through the medical centers. FPA, a San Diego-based physician practice management company, said it also is developing independent practice associations in Florida.
The sale is expected to close about June 1. The proceeds will produce an after-tax gain of $6.5 million to PCA in the second quarter of 1996.
Meanwhile, PCA reported its results for the first quarter ended March 31. Enrollment and revenues rose to record levels, and the HMO's net loss dropped from the previous quarter, reflecting a turnaround in PCA's Florida operations.
Revenues increased 38% to $378.9 million in the first quarter. The company lost $4.9 million, or 13 cents per share, compared with net income of $6.4 million, or 16 cents per share, in the same period in 1995.