An HMO owned by Baptist Health System, Birmingham, Ala., and Infirmary Health System, Mobile, Ala., has acquired two HMOs from Physician Corporation of America, Miami, for $25 million.
Birmingham-based Health Partners of Alabama acquired PCA of Alabama with its 62,000 enrollees and PCA of Georgia and its 17,000 enrollees. The two HMOs will boost Health Partners' enrollment to 160,000 from 81,000, a spokesman for Health Partners said.
In 1986, Baptist formed Health Partners, which reported revenues of $100 million in 1995. Infirmary purchased an 11% share in the HMO in 1995. Baptist Health System operates 11 hospitals in Alabama, and Infirmary operates three hospitals in the southwest part of the state.
"The formation of Health Partners was one of the best strategic decisions Baptist Health System has ever made," said Dennis Hall, system president and chief executive officer. "It has resulted in a perfect fit with Baptist's strategic initiatives of cost management, delivery of primary care and managed care."
Health Partners' goal is to become one of the largest HMOs in the Southeast, said spokesman David Nichols. Growth plans call for Health Partners to add more hospital partners and to increase HMO enrollment to more than 400,000 by the year 2001, Nichols said.