A small health management company has become the second suitor wanting to buy some of PHP Healthcare Corp.'s assets, which are in bankruptcy.
Springfield, Va.-based IQ Holdings on Jan. 19 said it would offer "an update and clarification" of its plans to buy assets of PHP, which on Nov. 19 filed for Chapter 11 bankruptcy protection in Wilmington, Del. PHP's New Jersey subsidiaries, which handled a now-canceled private physician management contract for HIP Health Plan of New Jersey, filed for Chapter 7 liquidation in the same U.S. Bankruptcy Court.
IQ Holdings, which handles government care such as dentistry for the U.S. Air Force, on Jan. 12 announced its intention to buy certain PHP assets, although it did not identify which ones.
PHP spokesman Roy Winnick says it received a letter from IQ Holdings before Jan. 12 expressing its interest in PHP assets. But Winnick says IQ Holdings admitted its news release was sent "in error," since the companies hadn't discussed a deal.
PHP's assets include a Medicaid HMO in Washington, D.C., and other government contracts.
Winnick doesn't know who sent IQ Holdings' release. But as evidence of an apparently rushed missive, he points out that it listed the wrong phone number for Luis Quinonez, its chief executive officer. The number was for a roofing company.
However, IQ Holdings' latest announcement hints a deal may be in the offing. Which assets the company wants still have not been disclosed. The U.S. Bankruptcy Court must approve any transfer of assets.
Quinonez did not return phone calls seeking comment. No update of IQ Holdings' plans had been released as of Modern Physician's deadline.
Arlington, Va.-based Ambulatory Healthcare of America on Dec. 16 offered to buy PHP's government-related assets. Like IQ Holdings, it sent a press release beforehand announcing its intention to buy PHP, only to retract it when PHP said no deal had been discussed.