PPO network to expand in South with acquisition

Private Healthcare Systems, Waltham, Mass., agreed to acquire another PPO network rental company, American Lifecare, New Orleans, for undisclosed terms. PHCS said the deal will strengthen its PPO operations in the South. Founded in 1983, privately held American Lifecare operates a regional PPO network serving 694,000 people and composed of more than 400 hospitals, 17,000 physicians and 1,400 other providers in Alabama, Arkansas, Louisiana, Mississippi and Tennessee. The company will retain its name. The acquisition does not require regulatory approval. Founded in 1985, PHCS serves 200 clients with about 15 million members through one of the nation's largest PPO networks, comprising 425,000 physicians and 3,700 hospitals and clinics. Its clients include self-insured employers, third-party administrators and health plans. -- by Laura B. Benko