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Biotech / Medical : FPA Medical Management - FPAMQ -- Ignore unavailable to you. Want to Upgrade?

To: Douglas V. Fant who wrote (894)	7/12/1998 1:45:00 PM
From: Kurthend	Read Replies (2) \| Respond to of 1110

Doug, I just came across this news that just came out today. Two things that may be of concern or interest: 1. What do you think the shifting of 300,000 patients will do to their cash flow or revenue? ie what percent do you think 300,000 less patients will have on their current revenue? 2. They stated in this news that they have a $25 million, 5 month bridge loan, but that they still may have to institute Chapter 11. Kurt FPA Medical closing about 50 facilities SAN DIEGO, July 12 (Reuters) - FPA Medical Management Inc. has closed or is in the process of closing about 50 of its health care facilities, the health care provider said. FPA also is ending operations in unprofitable markets and in those outside its new core business areas, and it has expanded the role of its financial advisers to include evaluation of strategic alternatives, the company said in a statement late Friday night. The markets from which it is withdrawing include Nevada, and parts of Arizona, California, Georgia, North Carolina and Texas, it said. As part of the move, it has shifted provision of medical care for about 300,000 patients to other providers. On July 2, the company announced it had received a five-month, $25 million bridge loan, giving it some breathing room in its bid to restructure its business. The restructuring, however, ultimately may involve a Chapter 11 bankruptcy filing, it warned at the time. On Friday, chief executive officer Stephen Dresnick said restructuring talks continue with its lenders regarding a broader recapitalization. As a result of its restructuring efforts to date, Dresnick said the company expects to realize $25 million in annual savings. It continues to explore other savings options, he said.