Integrated Health Services files to make public stock offering Initial offering of 3 million shares proposed by Hunt Valley medical services company.

April 05, 1991|By Liz Atwood | Liz Atwood,Evening Sun Staff

Integrated Health Services Inc., a Hunt Valley-based company that provides medical services and geriatric care, has filed a petition with the Securities and Exchange Commission to make a public stock offering.

The company proposes an initial offering of 3 million shares of common stock priced between $12 and $14 a share.

The money raised from the offering will be used to repay certain debts, for working capital and for general corporate purposes, the company said.

The company was formed in 1986 by Robert N. Elkins, a psychiatrist and internist, and Timothy Nicholson, an attorney.

Integrated Health Services currently operates 5,731 beds in 42 medical centers in 15 states and employs 5,800 workers.

The company buys and upgrades nursing homes to medical specialty units that provide subacute medical services at a lower cost than acute-care hospitals. Because the goal is to rehabilitate patients, the average stay at the company's facilities is 6 1/2 months, said Stephen Drury, chief financial officer.

"Most people are discharged into a home setting on an assisted living program," Drury said.

The company filed its petition to make a public stock offering in March. Beginning next week, company officials will travel to Europe and throughout the United States trying to solicit investors.

The stock's official offering is expected to be made by the end of the month.

Smith Barney, Harris Upham & Co. Inc. and Kidder, Peabody & Co. Inc. are the co-managers of the underwriting group.

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