The Medical Group Management Association is now the proud, 100% owner of its own data-mining venture.
The not-for-profit MGMA, based in Englewood, Colo., was the successful bidder on Physcape, the medical group practice financial data-mining joint venture it co-founded in 2001.
Physcape, formerly based in Charlotte, N.C., 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 Phy-scape. An auction in Colorado wiped out the partners' interest and made the MGMA the sole owner.
The MGMA bid "just a little over half a million" dollars for the company, according to William Jessee, M.D., chief executive officer of the trade group. It was the only bidder. "We paid the book value for the assets and the software," Jessee says. "It's a commercially reasonable figure."
Several companies expressed interest, Jesse says, but many said they thought the company was more valuable with an MGMA affiliation than without one. The MGMA is talking "with a couple of them about either buying it or having them as an equity partner in it," Jessee says.
"We expect things are going to move pretty quickly," he says. "We still have the Web site up and the customers still have access to the data, but we're not taking up anymore data, so we don't want that hiatus to go on very long."
Meanwhile, the American Medical Group Association, Alexandria, Va., recently announced a partnership with Siemens Medical Solutions on a comprehensive data warehouse of patient records.
Siemens will provide information technology infrastructure and support services for Anceta, a for-profit subsidiary created by the AMGA about two years ago.
Over the next three years, officials expect the data warehouse to grow to about 10 million de-identified patient records from more than 25 AMGA member medical groups.
With Siemens, the company will create a data warehouse initially including about 10 medical groups and more than 4 million patients.
The information will be sold to employers, the government, pharmaceutical firms, biotech companies and others to help in development of industrywide standards of care, quality benchmarks and disease-management protocols, officials said. It will be made available at no cost to AMGA members.