Prime Medical Services, Austin, Texas, has acquired Lithotripters, based in Fayetteville, N.C., for $88 million-$70 million in cash and $18 million in stock. The merger creates the nation's largest lithotripsy company, with annual revenues of $90 million and 54 lithotripters in 31 states, executives said. The company, whose stock trades on the NASDAQ exchange, has contracts with 400 hospitals and 225 managed-care companies.
Cambridge, Mass.-based HPR, a publicly traded vendor of medical management and physician profiling software systems, has acquired The for 130,000 shares of HPR common stock, doubling to 260,000 after the effect of a two-for-one stock dividend declared April 16. At the close of trading April 30, the day the acquisition was announced, shares of HPR closed at $43 on the NASDAQ exchange. At that price, the acquisition was valued at $5.9 million. Since the stock price was reset for the dividend declaration in early May, shares have traded in the $25 range, which increases the value to about $6.5 million at the doubled share amount.
AHI Healthcare Systems reported a net loss of $924,000, or 6 cents per share, for the first quarter ended March 31, compared with a net loss of $327,000, or 3 cents per share, in the year-ago quarter. Revenues rose about 24% to $30.8 million. The Downey, Calif.-based company said it expects to report a net loss through at least the second quarter of this year. AHI integrates individual and small groups of primary-care physicians and specialists into local networks, providing affiliated physicians with access to managed-care contracts. AHI went public last fall.
Two physician practice management companies announced stock splits last week, hoping to increase liquidity. Nashville, Tenn.-based PhyCor plans a three-for-two split in the form of a stock dividend. One share of common stock will be issued for every two shares held by shareholders of record on May 31. Additional shares will be distributed June 14. Last week, the stock traded at about $55 on the New York Stock Exchange. Meanwhile, Houston-based American Oncology Resources approved a two-for-one split. New shares will be distributed June 10 to stockholders of record as of May 31. AOR shares, which trade on the NASDAQ exchange, were priced at about $50 last week.