Foundation Healthcare acquires majority interest in 99MGMT

Foundation HealthCare, an Oklahoma-based owner and operator of surgical hospitals and ambulatory surgery centers, has acquired a majority interest in Ninety Nine Healthcare Management (99MGMT).

99MGMT is a healthcare management company founded by physicians to serve physicians and their patients. It will continue to operate from its Dallas, Texas headquarters.

99MGMT provides a variety of critical practice management services relieving the hassles of running a practice, so physicians can focus on delivering quality patient care. Services offered by 99MGMT 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 99MGMT physician practice management relationship can yield on average a ten to fifteen percent increase in a physician's revenues net of fees," said Stanton Nelson, chief executive officer (CEO), Foundation HealthCare. "99MGMT allows private practice physicians access to better resources without sacrificing decision making control and autonomy for their practice."

He added: "We are excited to establish this relationship with 99MGMT because we believe it will allow us to provide exceptional practice management services for our physician partners and increase the value we provide to them.”

Joel Ciarochi, CEO, 99MGMT, commented: "Our people, processes, and strategic planning lead to higher practice revenues by aligning the goals and incentives for patients, physicians, hospitals, employers, and payers. The result is higher quality of care at an overall cost savings.

Hugh King, chief financial officer for Foundation HealthCare, said: "While financial terms of the transaction have not been disclosed, we expect this acquisition will be accretive to the company's earnings in the first 12 months following closing.”