FPA Medical Management has become the second large physician practice management company to replace its top executive as part of an effort to shift the company's focus from acquisitions to operations.
Stephen Dresnick, M.D., was named FPA's president and chief executive officer late last week following the resignation of company founder Seth Flam, D.O. Dresnick, 48, served as vice chairman since October 1996, when the publicly traded company he founded, Coral Gables, Fla.-based Sterling Healthcare Group, merged with FPA.
In another company change, Executive Vice President Steven Lash gave up his chief financial officer role to devote full time to operations. Douglas Kerner, a former vice president and treasurer of Total Petroleum, was named acting CFO.
FPA, based in San Diego, is the nation's third largest physician practice manager with revenues of $1.17 billion in 1997, up 72% from 1996. It lost $11.8 million, or 29 cents per share, in 1997, compared with a loss of $26.1 million, or 80 cents per share, the previous year.
FPA's stock dropped $1.56 per share on Friday to close at $16.69.
The company, which focuses on primary care, has achieved critical mass through acquisitions, which culminated in national payer contracts signed last year, Dresnick said. FPA will refocus on achieving positive cash flow and same-market growth while keeping a hand in acquisitions, he said.
The move echoes similar changes at Birmingham, Ala.-based MedPartners, which named E. Mac Crawford of Magellan Health Services as its CEO this month following the January resignation of its founder, Larry House (March 23, p. 14).