Albuquerque, N.M.-based Horizon/ CMS Healthcare Corp. agreed to sell certain assets of its Advanced Cardiac Technologies subsidiary for $13 million in cash and $4.5 million in stock to Diagnostic Health Services, Dallas. Scot Sauder, vice president of legal affairs for Horizon/CMS, said the company will retain the mobile X-ray business of the Albuquerque-based subsidiary, which operates in 12 states. Diagnostic Health will acquire its ultrasound and other diagnostic services. Sauder said the sale is related to Horizon/CMS's overall strategy of streamlining its operations and focusing on its core businesses. He defined those businesses as long-term-care services, acute rehabilitation hospitals, contract therapy, physician services, pharmaceutical services and outpatient rehabilitation clinics. The transaction is expected to close in the first two weeks of November. It will be the largest acquisition to date for Diagnostic Health and will increase its size by more than half. Diagnostic Health currently offers radiology and cardiology diagnostic services and equipment to healthcare providers in 12 states. It reported annual revenues of $17.1 million for fiscal 1995. Separately, Horizon/CMS reported net earnings of $8.1 million, or 15 cents per share, for its first quarter ended Aug. 31, compared with a net loss of $28.9 million, or 56 cents per share, for the year-ago period. Net revenues rose 2.8% to $443.6 million. Earnings were affected by a $7.2 million nonrecurring charge related to the restructuring of the company's Mechanicsburg, Pa., corporate office.
With a $500,000 gift from Sisters of Charity of St. Vincent de Paul of New York, New York's Saint Vincents Hospital and Medical Center will establish a chair in medical ethics, making it what is believed to be the only Roman Catholic center for ethical discussions in the Boston-to-Washington corridor, said Sister Karen Helfenstein, the hospital's senior vice president. Saint Vincents announced the gift at its annual awards gala last week. A total of $1.5 million is needed to fully endow the chair. Edmund D. Pellegrino, M.D., director of the Center for Clinical Bioethics at Georgetown University, will head a search committee to find an ethicist to help educate physicians, staff and residents, lead medical ethics discussions, assist in urgent cases, and serve as a resource to the New York-based Catholic Health Care Network and New York Medical College.
Los Angeles-based HealthCare Partners has acquired Private Practice Physicians Medical Group of Torrance, Calif. Terms weren't disclosed. The deal adds 90 primary-care physicians, 125 specialists and 16,000 patients to HealthCare Partners' network. It currently has 1,100 physicians and covers 250,000 people through medical groups and independent practice associations in California and Arizona.