December 1998 Bulletin

MedPartners quits buying physician practices

MedPartners Inc., the largest physician practice management (PPM) company, is abandoning the business of buying and managing physician practices. MedPartners plans to sell or spin-off to shareholders its 238 physician clinics and more than 10,000 affiliated doctors within the next 12 months. MedPartners will concentrate on its Caremark division which manages pharmaceutical benefits for employers and managed care companies.

Wall Street became disenchanted with PPMs this year when the companies began to report losses or lower than expected earnings because of difficulties of integrating some of their practices.

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