Corporate Practice

KPC Struggles To Stay Alive By Selling Physician Practices

After paying $24 million to buy most of MedPartners' bankrupt physician practice management business, KPC Medical Management finds itself losing millions of dollars, resulting in some 1,400 layoffs and 29 clinic closings. In an effort to revitalize itself, KPC is offering to sell the its employee doctors an 80% stake in their practices at about $80 for every patient they serve under an HMO contract, if they're willing to agree to a 10-year contract with KPC to manage the practices and provide information-technology services for a fee of 12-15% of gross revenue. It's unclear how many physicians will take KPC up on its offer, but experts agree most of them will have to if the company is expected to survive.

Source: The Orange County Register, March 1, 2000