MEDPARTNERS: Posts First Quarter Gain
MedPartners Inc. yesterday reported first quarter net income of $10.8 million as the company continues its shift from a physician-practice management (PPM) firm to a pharmacy benefits manager (PBM). The posting, in line with analysts' estimates, was largely based on income to the Birmingham, AL-based firm's Caremark PBM division, the Los Angeles Times reports. The company's revenue totalled $785 million for a relatively slim 1.4% profit margin, but the net gain represented a 69% increase from the year-ago period, when the company earned $6.4 million. MedPartners credited the improvement to the "jettisoning" of its troubled PPM business, including the California network recently taken over by state regulators. The company is currently in negotiations to "pay off all of its California debts in exchange for release from the state seizure" (Bernstein, 5/5). MedPartners CEO Mac Crawford said, "We think things are progressing nicely," and added that "the company expects to reach a final agreement within a week with California regulators" (Carrns, Wall Street Journal, 5/5).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.