BUSINESS BRIEFS: BAXTER ACQUIRES RESEARCH MEDICAL INC.
In a stock swap valued at $236 million, BAXTERThis is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.
INTERNATIONAL, a Deerfield, IL-based global health products
company, has agreed to buy Salt Lake City, UT-based RESEARCH
MEDICAL INC. (MULTIPLE SOURCES, 12/5). The acquisition "pumps
new life in Baxter's efforts to broaden its line of products in
treating late-stage cardiovascular disease." Research Medical is
one of the country's largest makers of cannulae, "tubes used to
transfer a patient's blood to heart-lung machines during open-
heart surgery," and has several products under development,
including tools for minimally invasive cardiac surgery. Mike
Mussallem, a Baxter group vice president, said, "Research
Medical's products complement our own. They are a perfect fit
and there is little or no overlap." The deal is expected to
close "in 60 to 90 days" (Oberbeck, SALT LAKE TRIBUNE, 12/5).
UNITED HEALTHCARE CORP. announced Tuesday that it has "sold
its long-term care insurance subsidiary to a group of venture
capital firms that plan to form a new company in California."
The investors, Warburg-Pincus, Franklin Ventures, New Enterprise
Associates and Pacific Ventures said that they would create LONG
TERM CARE GROUP INC., "using the base of business purchased from
United HealthCare of Minnetonka." The new company, which will be
headquartered in El Segundo, CA, "will market a fully insured
long-term care product to consumers as well as to fully insured
or self-insured corporations and government organizations," and
will develop "managed care options for long term care."
Minneapolis STAR TRIBUNE reports that the Long Term Care Group
Inc. "will start by administering long-term care insurance for
more than 100,000 people nationwide," including some California
Public Employee Retirement Systems members. Terms of the deal
were not disclosed (Howatt, 12/4).
HEALTHSOURCE ARKANSAS VENTURES INC. announced yesterday that
it will dissolve one of its largest subsidiaries, Little Rock-
based SPRADLEY & COKER INC. ARKANSAS DEMOCRAT-GAZETTE reports
that Spradley & Coker, "once the state's largest independent
third-party administrator of corporate-funded health insurance
plans," will refer its clients to another Little Rock company,
Corporate Benefit Solutions Inc. The business will close by June
1997 because its parent company, New Hampshire-based Healthsource
Inc., has "decided to focus" on its core HMO business (Plunkett,