Advanced Health Corp., a Tarrytown, N.Y.-based physician practice management company, posted net income of $1.2 million, or 14 cents per share, in the second quarter ended June 30, compared with a loss of $655,000, or 15 cents per share, in the year-ago quarter. The company's revenues surged 232% to $13 million. In the first six months of the year, the company reported net income of $1.9 million, or 22 cents per share, compared with a loss of $1.9 million, or 41 cents per share, in the year-ago period. Revenues jumped 202% to $23 million. Advanced Health's Chairman and Chief Executive Officer Jon Edelson, M.D., chalked up the quarter's stellar performance to "the successful implementation of our strategy," which includes partnering with physician group practices and further penetrating the East Coast healthcare market. The company currently serves more than 1,800 physicians. Revenues and earnings growth also resulted from software sales through the company's clinical information systems subsidiary, says Alan Masarek, Advanced Health's chief operating officer and chief financial officer.
Moody's Investors Service is reviewing its underlying A2 rating on Bon Secours Health System's $650 million of debt for possible downgrade. The review comes as the Marriottsville, Md.-based system prepares to issue another $140 million of insured debt, which is more than previously anticipated, Moody's says. The New York-based rating agency is concerned the new debt will further erode Bon Secour's balance sheet. "The health system already has one of the weakest balance sheets of all the multistate health systems that have debt rated by Moody's," it says.
Fitch Investors Service lowered its rating on Parkview Community Hospital Medical Center's $15.1 million of hospital bonds to BBB- from BBB+. The bonds also were placed on FitchAlert, which could result in another downgrade of the Riverside, Calif., hospital. With negative operating income of $3.4 million for the year ended Dec. 31, 1996, Parkview's debt service coverage ratio dipped to 0.4, causing a technical default on its bonds, Fitch says. The hospital's bond covenants required a debt service coverage ratio of 1.1. Debt service coverage measures the amount of cash flow available to pay off debt. Fitch says management has retained the national consulting firm Arthur Andersen to make recommendations that will bring the hospital back into compliance.
Sisters of Mercy Health System scored a second ringing endorsement of its strong credit position earlier this month when Standard & Poor's Corp. raised the St. Louis-based system's credit rating to AA+ from AA. The upgrade, which affects $296.1 million of variable-rate debt, follows on the heels of Moody's Investors Service's decision to bump up the system's rating to Aa1 from Aa2 (July 28, p. 38). Sisters of Mercy's "premier financial profile" helped it earn the upgrade, Standard & Poor's says.
First Union Capital Partners has invested $15 million in Physician Partners, a Portland, Ore.-based practice management company. Physician Partners officials say the investment will enable it to continue expanding its services. It will further enable the company "to improve systems and approaches to patient care, enhance convenience to our patients, and increase the efficiency and job satisfaction of our physicians," says Michael Bonazzola, M.D., the PPM's senior vice president and chief medical officer. First Union Capital Partners is the private equity investment arm of Charlotte, N.C.-based First Union Corp., the nation's sixth-largest bank holding company. Physician Partners currently manages three multispecialty group practices with more than 300 physicians, nurse practitioners and physician assistants.
Active Services Corp., Birmingham, Ala., says it has obtained an additional $4.5 million in capital funding for its continued expansion of adult day-care centers. Active Services has opened or acquired 13 adult day-care facilities since June 1996 and plans to double that number during the next year. The company saus it has raised a total of nearly $11 million in investment capital and plans to expand outside the Southeast U.S. within the next few months.