MedPartners intensified its Western presence last week with an agreement to acquire Talbert Medical Management Holdings Corp. in a $200 million cash deal.
Costa Mesa, Calif.-based Talbert manages 282 group physicians at 52 clinics in five states (See chart).
MedParters gains entree into the markets of Salt Lake City/Provo, Utah, Tucson, Ariz., and Albuquerque. It also adds to its physicians in Phoenix and Southern California.
Talbert was spun off in April from FHP International, where it provided care under FHP's staff-model HMO. Its losses, which started under FHP's wing, have continued. Talbert reported a second-quarter loss of $9.7 million on revenues of $119.1 million, citing a decrease in capitated enrollment and less favorable contracts with its former parent.
PacifiCare Health Systems, which merged with FHP in February, represents 98% of Talbert's 270,000 prepaid enrollees.
MedPartners is expected to help Talbert physicians access new payers. The company has a record of turning around money-losing physician operations.
The deal is expected to close by late September. MedPartners said it anticipates full antitrust clearance.
Following the deal, MedPartners will be affiliated with 13,410 physicians in 39 states, 3,270 of them in medical groups. It will manage more than 2.2 million capitated lives.