DVI, a Doylestown, Pa.-based financing firm specializing in medical equipment leases, purchases and medical receivables, late last month acquired the merchant banking operations of JG Wentworth, based in Philadelphia. Terms were not disclosed. The acquired unit provides banking services to long-term-care facilities, assisted-care facilities and specialty hospitals. During the past five years it has generated more than $100 million in medical receivables financing, more than $200 million in mortgage financing and assisted in more than $55 million in merger and acquisition transactions, DVI says. The JG Wentworth unit will operate under the name DVI-Merchant Funding and provide private placement, loan syndication, bridge financing and merger/acquisition consulting services.
Complete Management's continued growth is reflected in the strong earnings and revenues numbers it posted for the latest quarter. For the third quarter ended Sept. 30, the New York-based physician practice management company reported an 86% spike in net income to $2.7 million, or 22 cents per share. That's up from $1.5 million, or 13 cents per share, in the year-ago quarter. Revenues grew 131% to $20.2 million. For the nine months, net income rose 67% to $6.5 million, or 57 cents per share, compared with $3.9 million, or 42 cents per share, in the year-ago period. Revenues soared 166% to $53.4 million. The company expanded its reach this summer with its acquisition of Consumer Health Network, a PPO serving Connecticut, New Jersey and New York (June 23, p. 24).
Atlanta-based Paragon Health Network says its board of directors has authorized a 3-for-1 split of its common stock. The additional stock will be distributed Dec. 30. The split will increase the company's primary shares outstanding to 41 million from 13.7 million. Paragon was recently formed through the merger of Houston-based Living Centers of America and Atlanta-based GranCare. It runs 327 skilled-nursing and assisted-living facilities and 34 institutional pharmacies. It also holds rehabilitation therapy contracts with more than 450 long-term-care facilities and more than 180 acute-care hospital program contracts.
International Managed Care Advisors, a 14-month-old healthcare investment and management company in New York, says it plans to buy minority stakes in two healthcare insurance subsidiaries of Argentina's Banco de la Provincia de Buenos Aires for $50 million in cash. The deal gives IMCA a 20% stake in a 1.1 million-enrollee managed-care workers' compensation services company and a 40% stake in a start-up company that will provide general healthcare services. IMCA says it functions as the healthcare arm of Insurance Partners, a $540 million private-equity fund established in 1994 by a group of investors, including Texas investor Robert Bass, Chase Manhattan Bank, Zurich Investment Group and Northwestern Mutual Life Insurance Co. The Argentine deal is IMCA's second healthcare transaction. The company also has purchased a majority interest in Corporate Health Dimensions, a Latham, N.Y.-based provider of primary and occupational healthcare services for U.S.-based multinational employers.
Fonar Corp. reported a narrowed loss of $2.3 million, or 4 cents per share, for its first quarter ended Sept. 30, compared with a net loss of $3.1 million, or 6 cents per share, in the year-ago quarter. Fonar, an MRI scanner manufacturer based in Melville, N.Y., says revenues rose 66% to $6.7 million. During the first quarter, Fonar's physician practice management subsidiary, U.S. Health Management Corp., had net income of $700,000, after merger-related expenses of approximately $300,000, on revenues of $4.6 million. Fonar launched the PPM unit in July.