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Coastal Physician Group, Inc.
(Name of Registrant as Specified In Its Charter)
Coastal Physician Group, Inc.
(Name of Person(s) Filing Proxy Statement)
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NEWS RELEASE COASTAL PHYSICIAN GROUP, INC.
Its Subsidiaries and Affiliates
FOR IMMEDIATE RELEASE CONTACT: Robert P. Borchert
Coastal Physician
Group, Inc.
919-383-0355
Marybeth Morsberger/
Jean Fleckenstein
(for HelixCare)
410-685-3390
COASTAL PHYSICIAN GROUP SIGNS DEFINITIVE AGREEMENT
TO SELL ITS MARYLAND CLINIC OPERATIONS TO HELIXCARE
DURHAM, NC, September 16, 1996 -- Coastal Physicians Group,
Inc. (NYSE: DR) announced that it has executed a definitive
agreement to sell certain assets of Physicians Planning Group,
Inc. (PPG), its Maryland capitated clinic operations, to
HelixCare Properties, LLC. HelixCare is an affiliate of Helix
Health Inc., the largest integrated health care delivery system
in the State of Maryland.
Coastal expects to realize approximately $17 million in net
cash proceeds on a pre-tax basis, which will be used primarily
to reduce bank indebtedness. The proposed transaction is
subject to certain regulatory and other approvals, and is
expected to close before the end of September. Specific terms
of the transaction were not disclosed.
"This divestiture will be a significant milestone in Coastal's
efforts to successfully execute the Company's previously
announced turnaround plan," said Joseph G. Piemont, President
and Chief Executive Officer of Coastal Physician Group. "We
intend to continue on our aggressive path toward revitalizing
the Company through the sale of certain assets, while
simultaneously improving Coastal's core operations and
evaluating strategic alternatives to maximize shareholder
value."
Coastal Physician Group, Inc. is a diversified physician
management company providing a broad range of health care and
administrative services to physicians, hospitals, employers,
managed care programs and other health care providers.
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