In recent weeks PhyCor has drawn greater interest from a major investor and lost one of its most visible executives.
Warburg Pincus, a New York-based venture investing firm, says it has increased its stake in the Nashville, Tenn.-based physician practice management company to 9.6%, or more than 7.3 million shares.
Warburg Pincus bought more than 2 million of those shares between Dec. 16 and Jan. 12, according to a Securities and Exchange Commission filing. The company paid between $4.69 and $8.13 for its shares.
According to the filing, Warburg Pincus says it believes PhyCor is a good investment because its stock is undervalued and its management is strong.
Joseph Hutts, PhyCor's chairman and chief executive officer, says Warburg Pincus has no interest in taking a board seat or making other changes at the company.
Meanwhile, Paul Keckley, PhyCor's vice president for strategic development, left the company as of Jan. 1. Keckley says his departure was a "mutual agreement" between he and Hutts.
Keckley, who joined PhyCor in 1995, was responsible for investigating new markets for PhyCor and helping add physicians in existing markets. He also represented PhyCor at trade conferences, although Hutts filled that role more often last year.
Keckley says he is working on launching a healthcare technology business focusing on the Internet.