MEDICAL ASST MGMT (OTC:MAMT)
Industry: Healthcare
Medical Asset Management, Inc. (MAM) is a physician practice management company that develops contractual affiliations with physician practices. These contractual agreements provide clinical autonomy for the physicians' practice, as well as professional practice management by the Company. Through its subsidiary, Healthcare Professional Management, Inc. (HPM), the Company also offers a full array of management services to physicians and other independent healthcare entities under long-term service contracts as a management service organization (MSO). The Company has long-term MSO contracts with five medical group practices having a total of 48 physicians in two states. HPM also provides practice management services on a consulting basis to over 200 physicians in Pennsylvania, West Virginia and Ohio. The Company's strategy is to develop physician-driven, integrated provider networks of small to mid-sized physician groups that deliver cost-effective healthcare in selected geographic markets. Under the Company's standard equity arrangements, the Company has developed equity affiliations with 28 physician practices having a total of 54 physicians in eight states as of November 1, 1997. Pursuant to these equity affiliations, the Company has exchanged cash and Common Stock for the ownership and management of the business assets and the practices, as well as the rights to manage such practices. Although the amounts and terms of such arrangements are separately negotiated with each affiliated practice, the Company typically purchases the practice's accounts receivables and office equipment and enters into a 25-year practice management agreement. This agreement provides for the management and administration of all non-medical personnel and human resource issues. The agreement also provides for general business administration, reimbursement management, and an integrated information system, which includes electronic patient records filing and other daily operating systems. The Company's revenues under such agreements are derived from the medical service revenues generated by the physicians. These revenues consist of the reimbursement of the practice's operating expenses, which include salaries and benefits for clerical personnel and management fees. The management fees are based primarily on a percentage of the practice's medical service revenue collected by the Company. Under its standard equity agreements, the Company has earned an average of 5% to 10% of the annual collected medical service revenue. Pursuant to the management agreement, the physicians receive a negotiated percentage of collected medical service revenue. These budgeted payments are to be used to cover the professional expenses of the practice, which include physicians' and other medical providers' salaries and benefits, as well as malpractice insurance for the physicians and other healthcare providers. The total amount retained by physicians, excluding advances, averaged 31% of the sum of the Company's net revenues in 1996 plus the amounts retained by medical groups. In addition, the Company, through HPM, provides services to medical practices through service contracts and consulting arrangements. Services provided under current long-term service contracts, which range from four to eight years in length, include billing and collections, accounting, human resource management, financial management and marketing. The Company's revenues under such contracts consist of management fees based on a percentage of the practice's medical service revenue collected by the Company. The percentage of medical service revenue received as a management fee by the Company under these non-equity arrangements varies with the services provided to the practice. On average, in 1997, the Company has received management fees under its non-equity long-term service contracts of between 3% and 11% of the practice's collected medical service revenues. Services provided under consulting arrangements include practice management, accounting, tax preparation, employee benefits analysis and r
As Of: 10/07 00:00 ET
*Quotes delayed by 20min.
BuyIns.Net Alerts for Symbol MAMT
- No BuyIns.Net Alerts Available for MAMT
Graphs for MAMT
3 Month Graph
6 Month Graph
1 Year Graph
