SurgiCare, Houston, a chain of five outpatient surgery centers, said it plans to combine with three other healthcare services firms in a new publicly traded company called Orion HealthCorp. Under the proposal, SurgiCare would acquire Houston-based Dennis Cain Physician Solutions and Medical Billing Systems, affiliated companies that provide practice management and billing and collections services, for $3 million in cash, a $1 million promissory note and 9.5% of the stock in Orion. Meanwhile, the new company would acquire Integrated Physician Solutions (IPS), Roswell, Ga., in a stock transaction. IPS includes Pediatric Physician Alliance, which operates 15 pediatrics clinics in six markets, and IntegriMED, which provides medical office software and management support. Brantley Partners, Beachwood, Ohio, would contribute $6 million in cash and $1.3 million in loans in exchange for a 51% stake in Orion. SurgiCare, which trades on the American Stock Exchange, reported $11.6 million in revenue in 2002; at deadline, income wasn't available. -- by Julie Piotrowski
Surgery-center chain to expand in three-part deal
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