American Health Properties has reached an asset swap agreement with Pasadena, Calif.-based Paracelsus Healthcare Corp. AHP acquired Pioneer Valley Hospital in West Valley City, Utah, in exchange for ownership interests in Elmwood Medical Center, Jefferson, La., and Halstead (Kan.) Hospital. Paracelsus will operate Pioneer Valley under a lease that carries the same total rate that had been paid for the two exchanged facilities. Pioneer Valley is part of a five-hospital system in the Salt Lake City area Paracelsus is creating through its planned merger with Houston-based Champion Healthcare Corp. (April 22, p. 14). "This transaction is consistent with our stated objective of owning facilities that are part of integrated healthcare delivery systems in local and regional markets," said Joseph P. Sullivan, president and chief executive officer of AHP, a Denver-based real estate investment trust.
Granary Associates, a Philadelphia-based facility development firm, has established a $50 million fund to finance hospitals' and health systems' "off-balance-sheet" capital projects. The fund is being managed by United Jersey Bank, a subsidiary of Princeton, N.J.-based Summit Bancorp, and United Jersey's affiliate, First Valley Bank in Bethlehem, Pa. In the past five years, Granary has completed $100 million in off-balance-sheet financings, such as sale-leaseback arrangements.
Genesis Health Ventures has completed an offering of 6.5 million shares at $32.50, raising $202 million. The company will use the proceeds to repay debt related to recent acquisitions, said George Hager, its chief financial officer. Genesis recently announced it would purchase long-term-care operator National Health Care Affiliates for $133.6 million, adding 17 facilities with 2,500 beds in Connecticut, Florida and Virginia. The company also has plans to buy NeighborCare Pharmacies for $57.3 million. Based in Baltimore, NeighborCare is a privately held infusion therapy and pharmacy company. Earlier this year, Kennett Square, Pa.-based Genesis consolidated its businesses under the name Genesis ElderCare. It serves more than 60,000 people through a network of geriatric services, including home care, pharmaceuticals and supplies, assisted-living communities, short-term rehabilitation and long-term care.
Pediatrix Medical Group has acquired certain assets of Infant Care Specialists Medical Group in Orange, Calif. Infant Care is the largest neonatology group practice operating neonatal intensive-care units in Southern California, the company said. The assets include contracts to operate 10 NICUs for $6 million in cash. Infant Care was founded by Louis Gluck, M.D., who developed one of the first neonatology programs at the University of California. Fort Lauderdale, Fla.-based Pediatrix is the nation's largest provider of physician practice management services to hospital-based NICUs. With the completion of this deal, the company now operates 62 NICUs, eight pediatric intensive-care units and three pediatrics departments in 14 states and Puerto Rico. Some 168 physicians are employed by or under contract with Pediatrix.
PMR, a San Diego-based company that provides long-term outpatient care to the seriously mentally ill, reported a turnaround in its earnings for fiscal 1996. The company reported net income of $918,000, or 21 cents per share, for the year ended April 30, compared with a net loss of $2.4 million, or 70 cents per share, in the previous year. Revenues rose 65% to $36 million. For the fourth quarter, PMR reported net income of $1.3 million, or 38 cents per share, compared with a net loss of $523,000, or 10 cents per share, in the year-ago quarter. Revenues grew 158% to $11.6 million. Mark Clein, the company's chief financial officer, said the company had increased its cash by 183%, repaid its expanded line of credit, and reduced its accounts receivable by 46%.