Genesis Health acquires 10% of Doctors Health

Maryland Watch

September 05, 1996

Genesis Health Ventures of Kennett Square, Pa., yesterday announced that it will pay $10 million for a 10 percent stake in Doctors Health System of Owings Mills. When Doctors Health meets operational and financial benchmarks, Genesis will invest another $10 million to bring its ownership interest to about 20 percent.

Genesis, which has nursing home networks in five markets, has been active in the Baltimore area. It owns more than a dozen nursing homes in the area, and in April bought Baltimore-based NeighborCare Pharmacies for $57.25 million, absorbing it into its institutional pharmacy division, called ASCO.

Doctors Health has built a network of physicians -- 350 primary care doctors and 800 specialists -- by contracting with doctors and by acquiring medical practices. Then it seeks contracts with managed-care insurers. One area of interest has been providing HMO services to Medicare patients, an area that fits with Genesis' elder care facilities.

Dr. Scott Rifkin, chairman of Doctors Health, said the group would use the capital to continue its recruitment of physicians.

Pub Date: 9/05/96

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