Horizon/CMS Healthcare Corp., a long-term-care provider based in Albuquerque, N.M., named Anthony F. Misitano, 42, senior vice president of Horizon/CMS and president and chief executive officer of Continental Medical Systems, which became a wholly owned subsidiary of the company in July 1995. Misitano has been with Mechanicsburg, Pa.-based CMS for the past eight years, serving as executive vice president of the hospital division and president of the hospital group's Midwestern division. He replaces Robert Ortenzio, who left Horizon/CMS on Aug. 9 after stepping down from the company's board of directors (July 8, p. 8). Misitano said he plans to further integrate the acute rehabilitation hospital operations of Horizon and CMS. The company also announced it plans to consolidate hospital offices at its Albuquerque headquarters. While the clinical operations staff of CMS will remain in Mechanicsburg, the rest of the corporate offices will move to New Mexico. Horizon/CMS reported a net loss of $24.8 million on revenues of $1.8 billion in fiscal 1996. The company provides long-term-care services at 120 owned or leased facilities and 142 managed facilities in 18 states. It also offers rehabilitation and subacute-care services at more than 200 other locations.
Primary Health Systems, Wayne, Pa., said it has completed a $190 million debt and equity financing for additional hospital acquisitions. PHS said Prudential Equity Investors, a New York-based venture capital company, provided $10 million of equity. A seven-year, $180 million revolving credit facility backed by First Union National Bank, Charlotte, N.C., and CoreStates Bank, Philadelphia, replaces a two-year, $100 million debt facility provided by Nomura Securities. The new facility provides longer-term and less expensive capital, said Joseph Gaynor, executive vice president and chief financial officer of the investor-owned hospital chain. After repaying Nomura, the agreements give PHS $90 million of new capital, which will allow it to finance acquisitions at least through year-end, Gaynor said. PHS also said it has acquired the assets of Richmond Heights (Ohio) General Hospital, which had been an affiliate of Cleveland's Sinai Health System.
Union representatives of the 1,900 registered nurses at Brigham and Women's Hospital in Boston said late last week they reached a tentative contract agreement with the hospital. The nurses had threatened to strike if the hospital did not meet some of their contract demands concerning patient care and job security. More than a year of negotiations between the hospital and the nurses had failed to produce an agreement. The current contract expires at the end of the month. Topping the nurses' list of concerns was their fear that Brigham and Women's would further cut the nurse-patient ratio and push to have unlicensed aides perform more nursing duties.
Rodney Armstead, M.D., has been named president and chief executive officer of Watts Health Foundation's new subsidiary, WattsHealth Management Co. Armstead is executive vice president and chief health officer of the Inglewood, Calif.-based Watts foundation and United Health Plan, its HMO. In his new role, Armstead will oversee WattsHealth's acquisition and management of medical groups and independent practice associations and will consult for firms doing Medicaid and Medicare contracting. Before joining Watts in 1995, Armstead was director of HCFA's Office of Managed Care.