Medical Asset Management Inc. Expands Presence in Health Care Market

Strategic Insights -

Medical Asset Management Inc. has made a significant move in the health care industry by acquiring the non-medical assets of a family medical practice and opening a new satellite medical clinic in conjunction with Physical Therapy Management Service Organization (PT-MSO). This expansion increases the company's market share to 15 practices under long-term management contracts, with a guaranteed 10% minimum of gross billings as management fees. As the health care services sector continues to grow, Medical Asset Management is well-positioned to capitalize on the opportunities, providing centralized management services to its rapidly expanding national managed care network.

Key Takeaways:

  • Medical Asset Management Inc. has acquired the non-medical assets of a family medical practice, expanding its presence in the Seattle marketplace.
  • The company has opened a satellite medical clinic in conjunction with Physical Therapy Management Service Organization (PT-MSO).
  • The acquisition increases the company's market share to 15 practices under long-term (25 years) management contracts.
  • The company will receive a guaranteed 10% minimum of gross billings as management fees, with potential for increase as the practice network grows and economies of scale expand.
  • Medical Asset Management operates in the fastest growing sector of the health care industry, health care services, and provides centralized management services to its rapidly growing national managed care network.
  • The company's clinics operate within management contracts that require specified revenue performance levels from each acquired practice, limiting Medical Asset Management's financial risk.
  • John Regan, Medical Asset Management's president, is pleased with the progress achieved in the Seattle marketplace.

Statistics:

  • 15 practices under long-term (25 years) management contracts.
  • 10% minimum of gross billings as management fees.
  • 25 years: the duration of the long-term management contracts.

Sources:

  • PRNewswire, "Medical Asset Management Inc. Acquires Part of Family Medical Practice," July 5, (no author listed).

Note: The date listed is July 5, and the publication date is not explicitly stated. However, the year is mentioned as 1995.