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REGISTRATION NO. 33-98528
RULE 424(B)(3)
SUPPLEMENT TO PROSPECTUS
DATED NOVEMBER 25, 1997
PHYCOR, INC.
3,000,000 SHARES
COMMON STOCK
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The Prospectus, dated November 25, 1997 (the "Prospectus"), to which this
Supplement, dated July 15, 1998, is attached (the "Supplement"), relates to the
resale by the holders thereof of up to 3,000,000 shares of the Common Stock, no
par value per share ("Common Stock"), of PhyCor, Inc. (the "Company"), issued or
to be issued by the Company without registration under the Securities Act of
1933, as amended (the "Act"), in connection with the Company's affiliation and
long-term relationships with single- and multi-specialty medical clinics,
individual physician practices and related businesses, including, but not
limited to, management services organizations, consulting firms and other
physician management companies. In addition, the Prospectus also relates to the
resale by certain selling shareholders of Common Stock issued without
registration under the Act in transactions not involving public offerings upon
the exercise of (i) options granted by the Company prior to the adoption by the
Company of its stock incentive plans; and (ii) stock purchase warrants issued,
or to be issued from time to time, in connection with financing activities,
acquisitions and related transactions, including, but not limited to, (A)
warrants issued as consideration for consulting or other services provided or to
be provided to the Company and the execution of a management or service
agreement with the Company or an affiliate and (B) warrants issued by the
Company to former holders of shares of Common Stock of PhyCor Management
Corporation, a wholly-owned subsidiary of the Company.
This Supplement relates to the resale, from time to time, by the persons
listed on Schedule A hereto (each a "Selling Shareholder") of up to an aggregate
of 614,957 shares (the "Shares") of Common Stock. Pursuant to an Agreement and
Plan of Merger, dated as of June 11, 1998, as amended June 30, 1998 (the "Merger
Agreement"), pursuant to which The Morgan Health Group, Inc., a Georgia
corporation ("Morgan"), merged with and into PM Merger Corporation, a Georgia
corporation and wholly-owned subsidiary of the Company ("PhyCor-Sub"). In
connection with this transaction, the Company issued the Shares to the Selling
Shareholders in the amounts listed on Schedule A hereto. Terms defined in the
Prospectus have the same meaning in this Supplement unless the context otherwise
requires.
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The date of this Supplement is July 15, 1998
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THIS SUPPLEMENT INCORPORATES DOCUMENTS BY REFERENCE WHICH ARE NOT PRESENTED
HEREIN OR DELIVERED HEREWITH. THESE DOCUMENTS ARE AVAILABLE UPON WRITTEN OR ORAL
REQUEST, AT NO CHARGE, FROM THE COMPANY. REQUESTS SHOULD BE DIRECTED TO PHYCOR,
INC., 30 BURTON HILLS BOULEVARD, SUITE 400, NASHVILLE, TENNESSEE 37215,
ATTENTION: N. CAROLYN FOREHAND, VICE PRESIDENT AND GENERAL COUNSEL.
Selling Shareholders
Each Selling Shareholder is a former shareholder of Morgan. Morgan merged
with and into PhyCor-Sub pursuant to the Merger Agreement. In connection
therewith, the Company issued the Shares to the Selling Shareholders in a
transaction exempt from the registration requirements of the Act. The Shares may
be resold by a Selling Shareholder through a registered broker-dealer in
accordance with the terms of the Prospectus and this Supplement. The aggregate
number of Shares that may be resold by each Selling Shareholder is indicated on
Schedule A hereto.
Plan of Offering
This Supplement relates to the reoffering, from time to time, of the Shares
through a registered broker-dealer. The resale of the Shares will be effected
through a registered broker-dealer in private or block transactions in the
over-the-counter market (including The Nasdaq National Market System) or
otherwise at fixed prices which may be changed, at market prices prevailing at
the time of the sale, at prices related to such prevailing market price, or at
negotiated prices. The broker-dealer may effect such transactions by selling the
Shares to or through other broker-dealers, and such broker-dealers may receive
compensation in the form of discounts, concessions or commissions from the
purchasers of the Shares for whom such broker-dealers may act as agent or to
whom they may sell as principal, or both (which compensation as to a particular
broker-dealer might be in excess of customary commissions). As a result of the
reoffering of the Shares pursuant to the Prospectus, as supplemented hereby, the
Company and the respective broker-dealers may be deemed to be "underwriters"
within the meaning of Section 2(11) of the Act, and any commissions received by
(or discounts allowed to) them and any profit on the resale of the Shares as
principal may be deemed to be underwriting discounts and commissions.
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Schedule A
Selling Shareholder Information
<TABLE>
<CAPTION>
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TOTAL
TIN/SOCIAL PHYCOR
NAME ADDRESS SECURITY # STOCK
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<S> <C> <C> <C>
Highland Capital Partners, II Two International Place 04-3143723 247,762
Ltd. Partnership Boston, MA 02110
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North American Care One Boston Place, #2820 04-3208746 52,338
Boston, MA 02108
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ABS Ventures IV One South Street, #2150 52-2017218 126,614
Baltimore, MD 21202-3220
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AMS/Brian Murphy 1012 West Ninth Avenue, ###-##-#### 6,911
#150
King of Prussia, PA 19406
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Bessemer Venture Partners, 1400 Old Country Road, #407 11-3197679 158,870
III, LP Westbury, NY 11590
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Belisarius Corp. 1400 Old Country Road, #407 13-3602954 594
Westbury, NY 11590
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Neill H. Brownstein 1400 Old Country Road, #407 ###-##-#### 1,366
Westbury, NY 11590
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Robert H. Buescher 1400 Old Country Road, #407 ###-##-#### 356
Westbury, NY 11590
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David J. Cowan 1400 Old Country Road, #407 ###-##-#### 475
Westbury, NY 11590
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Richard R. Davis 1400 Old Country Road, #407 ###-##-#### 1,188
Westbury, NY 11590
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Christopher F O Gabrieli 1400 Old Country Road, #407 ###-##-#### 8,913
Westbury, NY 11590
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G. Felda Hardyman 1400 Old Country Road, #407 ###-##-#### 3,565
Westbury, NY 11590
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Barbara M. Henagan 1400 Old Country Road, #407 ###-##-#### 594
Westbury, NY 11590
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Bradford Mills 1400 Old Country Road, #407 ###-##-#### 118
Westbury, NY 11590
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Gautam A. Prakash 1400 Old Country Road, #407 ###-##-#### 594
Westbury, NY 11590
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Quentin Corp. 1400 Old Country Road, #407 13-35556996 1,782
Westbury, NY 11590
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Thomas F. Ruhm 1400 Old Country Road, #407 ###-##-#### 153
Westbury, NY 11590
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Robi L. Soni 1400 Old Country Road, #407 ###-##-#### 355
Westbury, NY 11590
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BVP III Special Situations 1400 Old Country Road, #407 11-3218383 2,409
Westbury, NY 11590
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</TABLE>
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