Two physician practice management companies reported record earnings last week while a third revealed it's nearing a financial crisis.
Coastal Physician Group has put its primary business, physician contract services, up for sale to raise money for debt payments. Coastal said without a cash infusion it might not be able to repay its $78 million of debt due by July.
Durham, N.C.-based Coastal also said it might not have sufficient resources to meet its near-term cash needs. The company so far has not been able to reach an agreement with lenders for more funding.
Coastal expects to report a net loss for the fourth quarter ended Dec. 31 of $55 million to $65 million, compared with a net loss of $39 million in the year-ago quarter. It expects total net operating revenues of about $125 million, compared with $181 million in the year-ago quarter.
Meanwhile, Nashville-based PhyCor and Birmingham, Ala.-based MedPartners reported record revenues and earnings.
PhyCor posted a 60% increase in net income for its fourth quarter ended Dec. 31, to $11.2 million, or 18 cents per share, from $7 million, or 12 cents per share, in the year-ago quarter. Revenues grew 70% to $321 million. For the year, net income rose 66% to $36.4 million, or 60 cents per share, from $21.9 million, or 41 cents per share, in 1995. Annual revenues grew 73% to $766 million.
MedPartners reported a 38% rise in net income for its fourth quarter ended Dec. 31, to $40.5 million, or 26 cents per share, from $29.4 million, or 21 cents per share, in the year-ago quarter. Revenues grew 31% to $1.3 billion. For the year, net income rose 39% to $133.7 million, or 86 cents per share, from $96.2 million, or 69 cents per share, in 1995. Revenues grew 34% to $4.8 billion. The earnings exclude one-time charges.