Physician staffing giant TeamHealth has purchased an emergency physicians group in California and selected a new leader for its board of directors, the company announced this week.
Knoxville-based TeamHealth bought the Tri-City Emergency Medicine Group of Oceanside, Calif., a group that treats more than 70,000 patients annually at the Tri-City Medical Center, TeamHealth said. Terms were not disclosed.
“We are pleased to welcome the talented clinicians of Tri-City Emergency Medical Group to TeamHealth,” said TeamHealth CEO Michael Snow. “Their commitment to delivering excellent patient care along with their passion and respect for patients affords TeamHealth the opportunity to continue expanding our presence and serving communities in California.”
The Tri-City Emergency Medical Group includes 40 physicians and 15 advanced practice clinicians, TeamHealth said.
TeamHealth is the nation's largest physician-staffing company, employing more than 19,000 physicians and advanced clinicians across multiple disciplines at 3,500 hospitals and other facilities nationwide.
As part of recent board changes at TeamHealth, the company's board has appointed James Bierman, 63, the former CEO of Owens & Minor, to the newly created position of lead director.
TeamHealth co-founder and Executive Chairman Dr. Lynn Massingale was re-elected at last week's annual shareholder meeting to serve until the 2019 annual shareholder meeting or until his successor is elected.
Also, Snow and two directors added earlier this year from the investment fund Jana Partners were elected to serve until the 2019 annual meeting. They are Edwin Crawford, the former chairman of CVS Caremark, and Jana partner Scott Ostfeld, TeamHealth said.
TeamHealth acceded to the Jana appointments after the big TeamHealth investor complained that TeamHealth's equity shares were undervalued because of missteps by management and the board.
At the start of next year, a third Jana designee, retiring Henry Ford Health System CEO Nancy Schlichting, also will join TeamHealth's board of directors.
Bierman is an independent director who has served on the board for six years.
TeamHealth has struggled with earnings and its stock price since rejecting a $7.8 billion buyout offer from rival Amsurg in October. That offer promised a premium on TeamHealth's $62 per share stock price at the time. TeamHealth's stock price closed Thursday at $48.30 per share.
Instead, TeamHealth management has had its hands full with the $1.6 billion November acquisition of IPC, a leading provider of physician services in post-acute settings.
IPC's profit margins are running about 7%, less than the 11% that TeamHealth has carried, Snow told analysts during an earnings call in February.
