FPA Medical Management, Inc. completes acquisition of Foundation Health Corporation affiliated medical groups.SAN DIEGO--(BUSINESS WIRE)--December 11, 1996--FPA Medical Management, Inc. (Nasdaq:FPAM FPAM Financial Planning Association of Malaysia ) announced today that it completed its previously announced acquisition of Foundation Health Medical Group, Inc. in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Thomas-Davis Medical Centers, P.C p.c. (post cibum), n a Latin phrase meaning “after meals”; the abbreviation may be used in prescription writing. . in Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). and Foundation Health Medical Services. These entities were formerly affiliated with Foundation Health Corporation (NYSE NYSE See: New York Stock Exchange :FH). The acquisition of the entities will add approximately 200 primary care physicians servicing more than 240,000 HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, members throughout California and Arizona. If, as anticipated, FPA 1. (hardware) FPA - floating-point accelerator. 2. (programming) FPA - Function Point Analysis. retains substantially all of these members, FPA expects the transaction to add approximately $219 million in annual revenues in 1997. The acquisition was effective as of November 29, 1996 and therefore will contribute to FPA's fourth quarter revenues. FPA acquired the entities for approximately $198 million, consisting of $2 million in cash, $75 million in FPA common stock , and approximately $120 million in subordinated, secured notes. Commenting on the transaction, Dr. Seth Flam, President and Chief Executive Officer, stated, "This transaction expands our presence in California and Arizona and is consistent with FPA's strategy of servicing prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. healthcare members and developing long-term affiliations with HMOs." FPA Medical Management, Inc. is a national healthcare management service organization which organizes and manages primary care physician networks and provides contract management services to hospital-based emergency departments. Certain statements contained in this release are forward looking. Although FPA Medical Management, Inc. believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from its expectations. Factors that could cause actual results to differ from expectations include controlling healthcare costs, the possible negative effects of prospective healthcare reform, retaining HMO members, integrating the acquired entities from Foundation Health Corporation as well as other recently concluded and pending acquisitions. For other important factors that may cause actual results to differ materially from expectations and underlying assumptions, see reports by FPA Medical Management, Inc. filed with the Securities and Exchange Commission. CONTACT: FPA Medical Management, Inc. Investor Contact: Steven M. Lash, 619-453-1000 or Morgen-Walke Associates Robert P. Jones\Jill Ruja Media Contact: Miriam Adler, 212-850-5600 |
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