Coastal Physician Group reported a first-quarter net loss of $11.7 million, or 49 cents per share, a greater deficit than analysts had projected.
Coastal's stock closed unchanged the day of the announcement.
The loss compares with net income of $6.4 million, or 27 cents per share, in the year-ago quarter.
Net operating revenues for the quarter ended March 31 were $152.7 million, down 26.5% from the $207.9 million reported for the first quarter of 1995. Durham, N.C.-based Coastal attributed the revenue decline to the sale of its southern Florida clinics in November 1995.
Results were a month late because company officials were occupied with refinancing debt.
Coastal attributed the loss to high attrition and less new business in hospital-based contract services, a continued decline in reimbursement and collection experience, more spending on computer systems, reduced operating margins in several business units, and funding the start-up of managed-care businesses.
Coastal is attempting to improve cash-flow and regain focus. It hired Morgan Stanley & Co. as an adviser and said it anticipates divesting some assets within the next 90 days.
The company also recently terminated 46 unprofitable hospital contracts for physician management services.