Baxter International has reached a definitive agreement to acquire cardiovascular devicemaker Research Medical in a stock swap valued at $236 million. Salt Lake City-based RMI manufactures devices used to connect patients with heart-lung machines and protect their hearts during bypass operations. In addition, RMI is developing products to support minimally invasive cardiac surgery. "Very little surgery is done that way now," said Michael Mussallem, cardiovascular group vice president at Deerfield, Ill.-based Baxter. But minimally invasive techniques could account for half of all valve replacements and 25% of coronary bypass surgeries within five years, he estimated. That opportunity for growth, plus RMI's existing product lines and relationships with surgeons, make for a smooth fit with Baxter, Mussallem said.
Las Vegas-based Sierra Health Services has signed an agreement to acquire Las Vegas-based health plan operator Prime Holdings, a subsidiary of Columbia/HCA Healthcare Corp.'s Sunrise Hospital. The deal is expected to close within 60 days. Prime Holdings operates Prime Health and Med One Health Plan, a regional PPO and HMO. Prime Health PPO has enrollment of 200,000, while Med One HMO has 11,000 enrollees. Prime Health's 1995 revenues were $16.5 million, while year-to-date 1996 revenues through October totaled $21.2 million. Terms of the transaction weren't disclosed. Prime Health and Med One employ a total of 280, and some layoffs are expected.
Picker International will soon become the second-largest servicer of magnetic resonance imaging scanners made by General Electric Medical Systems, under a deal with imaging equipment provider Mobile Technology, Picker executives said. Picker's three-year contract begins March 1, when it replaces GE as the service provider for Mobile Technology's approximately 50 MRI scanners and a few computed tomography scanners. Most of the company's imaging systems are mounted in tractor trailers and serve multiple hospitals. Picker is aggressively expanding its multivendor servicing business. As a result of this contract, announced in conjunction with the Radiological Society of North America annual meeting, Picker will soon be servicing a total of about 80 GE MRI scanners, said Lou Foust of Picker. Financial terms of the contract weren't disclosed.
Nashville, Tenn.-based Behavioral Healthcare Corp. announced it has completed the acquisition of the psychiatric facilities of the former Community Psychiatric Centers for $60 million in cash plus $70 million in stock (Oct. 28, p. 21). The combined company anticipates total revenues of $309 million and is considering going public when market conditions are favorable. As a result of the sale, Community Psychiatric Centers changed its name to Transitional Hospitals Corp. and said it plans to continue evolving into a long-term-care hospital company.
Columbia-Presbyterian Medical Center in New York and its partners in an electronic network for coordinating patient care were singled out last week for top honors in the 1996 National Information Infrastructure awards competition. The project is aimed at following patients across multiple encounters, settings and providers by developing electronic records, automated clinical protocols and wireless communications to reach patients' homes. The hospital teamed up with the New York City Department of Health's Visiting Nurse Service and telecommunications companies to develop the network in northern Manhattan. The initiative won in the healthcare category, one of 10 categories in which NII awards were presented Dec. 3 in New York.
Apria Healthcare Group has signed a letter of intent with Matria Healthcare to provide women's home health services to managed-care organizations. A final agreement is expected before year-end. Costa Mesa, Calif.-based Apria provides home care through more than 350 locations in 49 states. Marietta, Ga.-based Matria specializes in obstetrical home care and maternity management services at its 36 regional centers and more than 40 additional sites. Matria expects to take a charge of $7.5 million in the fourth quarter as a result of staff cuts related to the March merger of Tokos Medical Corp. and Healthdyne Maternity Management that formed Matria.