The Medical Group Management Association, based in Englewood, Colo., is placing its three-year-old practice management data-mining business, Physcape, on the sale block April 16, but the trade group also plans to show up and join the bidding, its top officer said earlier this month.
Physcape, formerly based in Charlotte, N.C., uses financial data gleaned from medical groups to provide customers productivity coding analysis and other financial reports for practice management guidance. The company was formed in 2001 as a 50-50 joint venture between MGMA Services, a for-profit arm of the MGMA, and a consortium of small investors known as Enterprise Health Links. Through a subsequent recapitalization, the MGMA acquired an 80% stake in Physcape, said MGMA Chief Executive Officer William Jessee, M.D.
Last month, the MGMA's board of directors voted to take over operations of the company, and the board is now looking to either sell it outright or assume 100% ownership at the upcoming auction in return for money loaned to Physcape by the MGMA.