Coastal Physician Group signs letter of intent to sell its New Jersey clinic operations to The Valley Hospital.DURHAM, N.C.--(BUSINESS WIRE)--Sept. 25, 1996--Coastal Physician Group, Inc. (NYSE NYSE See: New York Stock Exchange : DR) announced that it has signed a letter of intent to sell certain assets of HealthNet, its New Jersey-based clinic operations, to the Valley Care Corporation, the parent of The Valley Hospital. HealthNet employs 32 physicians at the group's nine primary care sites in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of and New Jersey. The Valley Hospital, based in Ridgewood, New Jersey Ridgewood is a village in Bergen County, New Jersey, United States. As of the United States 2000 Census, the village population was 24,936. The Village of Ridgewood was created on November 20, 1894, with the same boundaries as Ridgewood Township. , is a 421-bed acute care facility serving the residents of northern New Jersey. The proposed transaction is a cash sale, the net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). of which would be used primarily to reduce bank indebtedness. The proposed transaction is subject to the execution of a definitive agreement as well as board and other approvals, and should close before the end of October. Specific terms of the proposed transaction were not disclosed. Separately, Coastal completed the sale of certain assets of Physicians Planning Group, Inc. (PPG PPG Points Per Game (basketball player statistic) PPG Power Play Goals (hockey) PPG Planning Policy Guidance (UK) PPG Programmable Pulse Generator PPG Power Puff Girls ), the Company's Maryland capitated clinic operations, to HelixCare. PPG has 35 primary care physicians specializing in family practice, internal medicine and pediatrics at the group's six locations throughout the Baltimore region. As was previously announced, Coastal realized approximately $17 million in net cash proceeds on a pre-tax basis, which will be used primarily to reduce bank indebtedness. "These assets have been separate, non-integrated subsidiaries of Coastal, but are clearly attractive businesses to strategic buyers such as Valley and HelixCare," said Joseph G. Piemont, Coastal Physician Group's President and Chief Executive Officer. "If consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. , these transactions should put us more than 60 percent of the way toward meeting our $40 million debt obligation due in January 1997, and are further indication that we are successfully executing our plan." Coastal Physician Group, Inc. is a diversified diversified (di·verˑ·s physician management company providing a broad range of health care and administrative services to physicians, hospitals, employers, managed care programs and other health care providers. CONTACT: Coastal Physician Group, Inc., Durham Robert P. Borchert, 919/383-0355 |
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