Oklahoma City-based Foundation HealthCare, which runs surgical hospitals and ambulatory surgery centers, has acquired a majority interest in Ninety Nine Healthcare Management, a Dallas-based healthcare management company focused on physician practices.
Services offered by Foundation include practice operations, payer contracting, revenue cycle management, strategic marketing, electronic health record optimization, human resources and ancillary service development, which complements the core medical practice.
A Dec, 9 PricewaterhouseCoopers report called 2016 the "year of merger mania." Last year broke records for M&A activity, but many experts see comparable activity for the coming year.
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Foundation HealthCare CFO Hugh King said in a statement that financial terms of the transaction have not been disclosed, but he "expects this acquisition will be accretive to the company's earnings in the first 12 months following closing."
Stanton Nelson, the company's CEO, said in a statement that a physician practice management relationship such as the one just established with 99MGMT "can yield on average a 10 to 15 percent increase in a physician's revenues net of fees."
Foundation HealthCare owns and/or operates four surgical hospitals and 10 surgery centers in seven states. Physicians who operate in its facilities currently provide general surgeries, as well as surgeries in such specialties as orthopedics, neurosurgery, pain management, podiatry, gynecology, optometry, gastroenterology and otolaryngology.