MedPartners to Trim 720 Jobs, Close Facilities
MedPartners Inc. said Thursday that it will eliminate 720 jobs, including 120 doctors’ positions, and close some clinics and other facilities in Southern California.
The Birmingham, Ala.-based firm, which manages physician practices nationwide, said the moves are needed after several recent acquisitions. It said the consolidation move is unrelated to its announcement Wednesday that it had agreed to be acquired by rival PhyCor Inc. for $8 billion in stock and assumed debt. The merger would create the nation’s largest manager of doctor practices.
“It’s a coincidence,” said Mark L. Wagar, MedPartners’ president and chief operating officer. “We’ve had this [consolidation] in the works for several months.”
Wagar said MedPartners has been examining ways to reduce costs and streamline operations in the wake of several recent acquisitions, including the Friendly Hills and Talbert medical groups.
The company said it will combine several Southern California business offices and data centers and move some doctors’ offices to different locations within the next six months.
Wagar said the company is eliminating 600 nonmedical jobs and 120 physician jobs. But at least half those employees could receive other jobs within the company, he said.
PhyCor shares fell $5.56 to close at $24 on Nasdaq; MedPartners shares sank $1.13 to close at $25.75 on the New York Stock Exchange.
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