MedPartners names new COO. MedPartners, Birmingham, Ala., last week appointed Bradley Karro as president and chief operating officer of its California operations. Karro previously served as president, chief executive officer and director of MaterniCare, Laguna Hills, Calif. He replaces acting COO David Mintz, who will return to his previous position of group vice president for California. Mintz replaced Kent Marquardt, who resigned early this year.
New York PPM to post loss. Advanced Health Corp., Tarrytown, N.Y., said last week it expects an operating loss of $3 million to $4 million on revenues of $17.5 million for the second quarter ended June 30. The physician practice management company cited scant sales of its information technology software, the termination of a management contract with the 20-physician Katonah (N.Y.) Medical Group, its failure to collect gain-sharing revenues from its physician practices and losses from a newly acquired physician practice management company, Malvern, Pa.-based Integrated Medical Management.
Md. doc group inks pact with Johns Hopkins. Flagship Health, a 160-physician group in central Maryland, last week signed a letter of intent with Johns Hopkins Medicine, Baltimore, to develop primary-care services in areas that the academic medical organization does not serve. In return, the multispecialty group practice, which has 200,000 patients at more than 35 clinical sites, will gain access to Hopkins medical and technical resources. Both partners will be free to pursue other business opportunities with hospitals, physicians and insurers.
Quorum buys Ind. hospital. An affiliate of Quorum Health Group, Brentwood, Tenn., last week completed the acquisition of 194-bed St. Joseph Medical Center in Fort Wayne, Ind. The seller was Hobart, Ind.-based Ancilla Systems, which is sponsored by the Donaldson, Ind.-based Poor Handmaids of Jesus Christ. The transaction converts the hospital to a for-profit facility. Neither party would disclose the purchase price.
Olsten will post $34 million loss. Olsten Corp., Melville, N.Y., last week said it expects to lose $34 million in its second quarter ended June 28, primarily due to the restructuring of its home health business. The company expects to take about $40 million in charges and adjustments, or 50 cents per share, for consolidation and closing of offices, investments in new technology, and changes in certain managed-care contracts. In the first quarter, Olsten earned $12.8 million on total revenues of $1.05 billion. Olsten and two of its subsidiaries, Olsten Health Services and Olsten Health Management, were notified in April by the U.S. Justice Department that they are targets of a federal grand jury investigation into possible violations of criminal laws (April 28, p. 4).
Daou Systems buys information technology firm. Daou Systems, a San Diego-based healthcare information systems design and services company, late last month announced the acquisition of Resources in Healthcare Innovations, an Indianapolis-based information technology company that implements most of the major healthcare software systems. The deal is valued at $54 million. Privately held RHI will become a wholly owned subsidiary of publicly traded Daou and will continue to operate from Indianapolis. The deal comes on the heels of Daou's $22.5 million acquisition of another Indianapolis-based firm, Technology Management.
ServiceMaster buys consulting firm. Outsourcing giant ServiceMaster acquired Kowalski-Dickow Associates, a speciality consulting firm, from AmeriNet, a group purchasing organization in St. Louis, late last month. Kowalski-Dickow is based in Milwaukee and employs about a dozen consultants with expertise in materials management, logistics and supply-expense management. Terms weren't disclosed. A spokesman for Downers Grove, Ill.-based ServiceMaster said Kowalski-Dickow will become a subsidiary of ServiceMaster's Management Services division.