The Medical Group Management Association is now the proud owner of its very own data-mining venture.
The not-for-profit MGMA, based in Englewood, Colo., purchased Physcape, the medical group practice financial data-mining joint venture it co-founded in 2001.
Physcape uses financial data gleaned from medical groups to provide productivity coding analysis and other financial reports for practice-management guidance to its customers.
The company was formed in 2001 as a 50-50 joint venture between MGMA Services, a for-profit subsidiary of the trade association, and a consortium of small investors known as Enterprise Health Links.
Through a subsequent recapitalization, the MGMA acquired an 80% stake in Physcape. The auction earlier this month in Colorado wiped out the partners' interest and makes the MGMA the sole owner of the company.
The MGMA bid "just a little over a half-million" dollars for the company, according to William Jessee, M.D., chief executive officer of the trade group. It was the only bidder.