<PAGE> 1
Securities and Exchange Commission
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): January 19, 1999
FPA Medical Management, Inc.
(Exact name of registrant as specified in its charter)
Delaware 0-24276 33-0604264
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
5835 Blue Lagoon Drive
Miami, FL 33126-2017
(Address of principal executive offices) (Zip Code)
(305) 477-4372
(Registrant's telephone number, including area code)
(Former name or former address, if changed since last report)
<PAGE> 2
Item 5. Other Events.
As previously reported on a Current Report on Form 8-K, on
July 19, 1998 and various dates thereafter through August 7, 1998, the
Registrant and various of its subsidiaries and affiliates (collectively, the
"Debtors") filed for protection under Chapter 11 in the United States District
Court for the District of Delaware (the "Bankruptcy Court"). The cases have been
consolidated for the purpose of joint administration and have been assigned to
Chief United States Bankruptcy Judge Peter J. Walsh. The consolidated caption
is: In re FPA Medical Management, Inc., et al. Debtors, Case Nos. 98-1596
through 98-1685.
On January 19, 1999, the Debtors filed with the United States
Bankruptcy Court for the District of Delaware its monthly operating report for
the period from November 30, 1998 through January 1, 1999 (the "MOR"), which is
attached hereto as Exhibit 99.1.(1)
- ------------------------
(1) The attachments and exhibits referenced in the MOR are not attached as
part of Exhibit 99.1, but are available at the Office of the United
States Trustee and the Bankruptcy Court. In addition, the Registrant
agrees that it will furnish a copy of any omitted schedule or similar
attachment to the Commission upon its request.
Item 7. Financial Statements and Exhibits.
(c) Exhibits
99.1 Monthly Operating Report for the period from November
30, 1998 through January 1, 1999.
2
<PAGE> 3
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, as amended, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
FPA MEDICAL MANAGEMENT, INC.
By: /s/ Stephen J. Dresnick
-------------------------------------
Date: February 2, 1999 Stephen J. Dresnick
Chairman and Chief Executive Officer
3
<PAGE> 4
EXHIBIT INDEX
Number Exhibit
- ------ -------
99.1 Monthly Operating Report for the period from November 30,
1998 through January 1, 1999.
4
<PAGE> 1
EXHIBIT 99.1
Debtor: FPA MEDICAL MANAGEMENT, INC.
Case Number: 98-01596PJW through 98-01685PJW
Notes to Monthly Operating Report for the period November 30, 1998 through
January 1, 1999, "Required Attachments":
1. Depository Tax Receipts for payroll tax deposits into tax trust accounts are
included for the month of December.
2. Copies of most of the Debtors' bank statements for the month of December are
attached; copies of the balance of the December statements not yet received from
the Banks and/or Debtors will be forwarded upon receipt. In addition, copies of
unsubmitted Debtors' bank statements in the prior period for the months of
October and November are attached.
3. The Debtors' most recently filed Income Tax Return for 1997 is included in
this period's (November 30, 1998 through January 1, 1999) filing with the Office
of the United States Trustee. The 1996 Tax Return was submitted in a prior
period (July 19-August 28, 1998) filing.
4. The Debtors' most recent Annual Financial Statements prepared by Accountant
were included in a prior period (July 19-August 28, 1998) filing with the Office
of the United States Trustee.
<PAGE> 2
FPA MEDICAL MANAGEMENT, INC.
MATRIX OF REQUIRED ATTACHMENTS / BANK STATEMENTS
<TABLE>
<CAPTION>
DECEMBER NOVEMBER OCTOBER
BANK BANK BANK
DEBTORS STATEMENTS STATEMENTS STATEMENTS COMMENTS
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Core Business Units:
Sterling Healthcare Group, Inc. X
San Antonio (Gonzaba)
Meridian X X
Florida Humana & Clinics X
Health Partners Inc.
Non-Core Business Units
Illinois MSO
Kansas City X X
</TABLE>
<PAGE> 3
FPA MEDICAL MANAGEMENT, INC.
DIP Budget
DIP Projected vs. Actual Cash Flows
November 30, 1998 through January 1, 1999
<TABLE>
<CAPTION>
--------------------------------------------
For the Period 11/30/98 to 1/1/99
--------------------------------------------
Projected (1) Actual (1) Difference
--------------------------------------------
A B C=B-A
--------------------------------------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ 2,660,276 2,660,276
Cash Receipts:
Fee For Service Billings $ 18,525,000 $ 14,587,404 (3,937,596)
Claims & Capitation $ 9,244,254 $ 8,499,493 (744,761)
Reimbursement $ -- $ 490,559 490,559
Medicare & Collections $ 2,000,000 $ 1,885,201 (114,799)
--------------------------------------------
TOTAL CASH RECEIPTS $ 29,769,254 $ 25,462,657 (4,306,597)
Less: Cash Disbursements:
Employee & Physician Payroll $ 22,554,000 $ 23,133,610 579,610
Catch-up payments to Doctors $ 250,000 $ -- (250,000)
Insurance $ 1,311,000 $ 2,065,301 754,301
Claims & Capitation $ 1,235,000 $ 1,681,375 446,375
Patient Refunds $ 125,000 $ 145,643 20,643
Rent $ 1,410,000 $ 1,544,865 134,865
Utilities $ 458,125 $ 518,118 59,993
Bank Lock-Box Account Fees $ -- $ -- --
Medical Supplies $ 574,000 $ 578,048 4,048
Other $ 2,713,000 $ 3,062,586 349,586
--------------------------------------------
Total Cash Disbursements $ 30,630,125 $ 32,729,546 2,099,421
Net Cash Flow $ (860,871) $ (7,266,889) (6,406,018)
Financing Charges (2) $ (719,449) $ (337,756) 381,693
Retention Costs (2) $ (350,000) $ (36,000) 314,000
Utility Company Deposits $ -- $ (29,775) (29,775)
Stop Loss Insurance (2) $ -- $ -- --
Professional Fees (2) $ (1,250,000) $ (1,562,655) (312,655)
Borrowing from/(Repayment to) HPI $ -- $ 1,900,000 1,900,000
Capital Expenditures (2) $ (600,000) $ -- 600,000
Restructuring Expenses $ -- $ -- --
First Union CD Deposit $ -- $ -- --
Restricted AWS Cash $ -- $ -- --
A/R Turnover from Collection $ 560,000 $ 411,650 (148,350)
Orange Coast Transaction Fees $ -- $ (23,060) (23,060)
Orange Coast Liabilities $ -- $ (22,390) (22,390)
Orange Coast Post-Sale Disbursements $ (910,000) $ -- 910,000
Sale of Other Assets $ -- $ 25,000 25,000
DIP Loan Borrowing/(Repayment) $ (2,450,338) $ 2,764,057 5,214,395
Sale of Axminster $ 1,350,000 $ 1,350,000
Orange Coast DIP Re-Borrowing $ -- $ -- --
ENDING CASH BALANCE $ (5,230,658) $ (167,542) 5,063,116
--------------------------------------------
</TABLE>
1) The projected data reflected herein is based upon the Final DIP Budget
submitted to the Court on July 20, 1998, as amended on November 16, 1998. The
actual data reflected herein is based upon the actual data reported to the
Bank Group in the Weekly Cash Reports.
2) Amounts for Financing Charges, Retention Costs, Stop Loss Insurance,
Professional Fees and Capital Expenditures are generally reflected at the FPA
Corporate level only. Additionally, Intercompany transfers occurring between
the Sterling Healthcare Group, Inc. and FPA Corporate are not separately
reflected herein.
<PAGE> 4
STERLING HEALTHCARE GROUP, INC.
DIP Budget
DIP Projected vs. Actual Cash Flows
November 30, 1998 through January 1, 1999
<TABLE>
<CAPTION>
------------------------------------------------
For the Period 11/30/98 to 1/1/99
------------------------------------------------
Projected Actual Difference
------------------------------------------------
A B C=B-A
------------------------------------------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ (1,963,291) $ 1,831,530 3,794,821
Cash Receipts:
Fee For Service Billings $ 16,400,000 $ 12,272,405 (4,127,595)
Claims & Capitation $ -- $ -- --
Reimbursement $ -- $ -- --
Medicare & Collections $ 2,000,000 $ 1,885,201 (114,799)
------------------------------------------------
TOTAL CASH RECEIPTS $ 18,400,000 $ 14,157,606 (4,242,394)
Less: Cash Disbursements:
Employee & Physician Payroll $ 12,400,000 $ 12,096,845 (303,155)
Catch-up payments to Doctors $ -- $ -- --
Insurance $ 250,000 $ 610,014 360,014
Claims & Capitation $ -- $ -- --
Patient Refunds $ 125,000 $ 110,549 (14,451)
Rent $ 120,000 $ 158,936 38,936
Utilities $ 84,000 $ 5,975 (78,025)
Bank Lock Box $ -- $ -- --
Medical Supply $ 2,000 $ 330 (1,670)
Other $ 1,600,000 $ 1,388,916 (211,084)
------------------------------------------------
Total Cash Disbursements $ 14,581,000 $ 14,371,565 (209,435)
Financing Charges $ -- $ -- --
Net DIP Advance $ -- $ -- --
Net Cash Flow $ 3,819,000 $ (213,959) (4,032,959)
Intercompany Transfers $ -- $ (1,818,819) (1,818,819)
ENDING CASH BALANCE $ 1,855,709 $ (201,248) (2,056,957)
------------------------------------------------
</TABLE>
<PAGE> 5
CALIFORNIA (AXMINSTER)
DIP Budget
DIP Projected vs. Actual Cash Flows
November 30, 1998 through January 1, 1999
<TABLE>
<CAPTION>
---------------------------------------------
For the Period 11/30/98 to 1/1/99
---------------------------------------------
Projected Actual Difference
---------------------------------------------
A B C=B-A
---------------------------------------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ (644,586) $ 780,726 1,425,312
Cash Receipts:
Fee For Service Billings $ -- $ -- --
Claims & Capitation $ -- $ -- --
Reimbursement $ -- $ 77,459 77,459
Medicare & Collections $ -- $ -- --
---------------------------------------------
TOTAL CASH RECEIPTS $ -- $ 77,459 77,459
Less: Cash Disbursements:
Employee & Physician Payroll $ 200,000 $ 185,402 (14,598)
Catch-up payments to Doctors $ -- $ -- --
Insurance $ -- $ 44,283 44,283
Claims & Capitation $ -- $ 305,783 305,783
Patient Refunds $ -- $ -- --
Rent $ -- $ -- --
Utilities $ 9,000 $ 16,513 7,513
Bank Lock Box $ -- $ -- --
Medical Supply $ 5,000 $ 76,671 71,671
Other $ 158,000 $ 53,459 (104,541)
---------------------------------------------
Total Cash Disbursements $ 372,000 $ 682,111 310,111
Agreed Cash Adjustments $ -- $ -- --
Less: Interest $ -- $ -- --
Net Cash Flow $ (372,000) $ (604,652) (232,652)
Intercompany Transfers $ -- $ (176,074) (176,074)
ENDING CASH BALANCE $(1,016,586) $ -- 1,016,586
---------------------------------------------
</TABLE>
<PAGE> 6
CORNERSTONE
DIP Budget
DIP Projected vs. Actual Cash Flows
November 30, 1998 through January 1, 1999
<TABLE>
<CAPTION>
---------------------------------------------
For the Period 11/30/98 to 1/1/99
---------------------------------------------
Projected Actual Difference
---------------------------------------------
A B C=B-A
---------------------------------------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ (33,000) $ -- 33,000
Cash Receipts:
Fee For Service Billings $ 150,000 $ 280,317 130,317
Claims & Capitation $ -- $ -- --
Reimbursement $ -- $ -- --
Medicare & Collections $ -- $ -- --
---------------------------------------------
TOTAL CASH RECEIPTS $ 150,000 $ 280,317 130,317
Less: Cash Disbursements:
Employee & Physician Payroll $ 120,000 $ 132,518 12,518
Catch-up payments to Doctors $ -- $ -- --
Insurance $ -- $ 14,607 14,607
Claims & Capitation $ -- $ -- --
Patient Refunds $ -- $ -- --
Rent $ 16,500 $ -- (16,500)
Utilities $ 8,125 $ 152 (7,973)
Bank Lock Box $ -- $ -- --
Medical Supply $ -- $ -- --
Other $ 50,000 $ 70,987 20,987
---------------------------------------------
Total Cash Disbursements $ 194,625 $ 218,264 23,639
Agreed Cash Adjustments $ -- $ -- --
Less: Interest $ -- $ -- --
Net Cash Flow $ (44,625) $ 62,053 106,678
Intercompany Transfers $ -- $ (62,053) (62,053)
ENDING CASH BALANCE $ (77,625) $ -- 77,625
---------------------------------------------
</TABLE>
<PAGE> 7
FLORIDA (CLINICS & HUMANA)
DIP Budget
DIP Projected vs. Actual Cash Flows
November 30, 1998 through January 1, 1999
<TABLE>
<CAPTION>
---------------------------------------------------
For the Period 11/30/98 to 1/1/99
---------------------------------------------------
Projected Actual Difference
---------------------------------------------------
A B C=B-A
---------------------------------------------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ 222,557 $ -- (222,557)
Cash Receipts:
Fee For Service Billings $ 1,000,000 $ 892,436 (107,564)
Claims & Capitation $ 2,300,000 $ 1,660,776 (639,224)
Reimbursement $ -- $ -- --
Medicare & Collections $ -- $ -- --
---------------------------------------------------
TOTAL CASH RECEIPTS $ 3,300,000 $ 2,553,212 (746,788)
Less: Cash Disbursements:
Employee & Physician Payroll $ 3,250,000 $ 3,283,611 33,611
Catch-up payments to Doctors $ -- $ -- --
Insurance $ -- $ 219,957 219,957
Claims & Capitation $ -- $ -- --
Patient Refunds $ -- $ 5,110 5,110
Rent $ 300,000 $ 381,149 81,149
Utilities $ 250,000 $ 268,002 18,002
Bank Lock Box $ -- $ -- --
Medical Supply $ 250,000 $ 75,334 (174,666)
Other $ 250,000 $ 467,866 217,866
---------------------------------------------------
Total Cash Disbursements $ 4,300,000 $ 4,701,029 401,029
Agreed Cash Adjustments $ -- $ -- --
Less: Interest $ -- $ -- --
Net Cash Flow $(1,000,000) $(2,147,817) (1,147,817)
Intercompany Transfers $ -- $ 2,147,817 2,147,817
ENDING CASH BALANCE $ (777,443) $ -- 777,443
---------------------------------------------------
</TABLE>
<PAGE> 8
MERIDIAN
DIP Budget
DIP Projected vs. Actual Cash Flows
November 30, 1998 through January 1, 1999
<TABLE>
<CAPTION>
---------------------------------------------------
For the Period 11/30/98 to 1/1/99
---------------------------------------------------
Projected Actual Difference
---------------------------------------------------
A B C=B-A
---------------------------------------------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ 357,931 $ 34,707 (323,224)
Cash Receipts:
Fee For Service Billings $ 475,000 $ 573,981 98,981
Claims & Capitation $ 2,800,000 $ 2,666,194 (133,806)
Reimbursement $ -- $ -- --
Medicare & Collections $ -- $ -- --
---------------------------------------------------
TOTAL CASH RECEIPTS $ 3,275,000 $ 3,240,175 (34,825)
Less: Cash Disbursements:
Employee & Physician Payroll $ 2,350,000 $ 2,544,408 194,408
Catch-up payments to Doctors $ -- $ -- --
Insurance $ -- $ -- --
Claims & Capitation $ 1,000,000 $ 1,036,770 36,770
Patient Refunds $ -- $ 20,666 20,666
Rent $ 550,000 $ 496,072 (53,928)
Utilities $ 25,000 $ 84,646 59,646
Medical Supply $ 120,000 $ 181,626 61,626
Other $ 375,000 $ 285,487 (89,513)
---------------------------------------------------
Total Cash Disbursements $ 4,420,000 $ 4,649,675 229,675
Agreed Cash Adjustments $ -- $ -- --
Less: Interest $ -- $ -- --
Net Cash Flow $(1,145,000) $(1,409,500) (264,500)
Intercompany Transfers $ -- $ 1,411,625 1,411,625
ENDING CASH BALANCE $ (787,069) $ 36,832 823,901
---------------------------------------------------
</TABLE>
<PAGE> 9
SAN ANTONIO (GONZABA)
DIP Budget
DIP Projected vs. Actual Cash Flows
November 30, 1998 through January 1, 1999
<TABLE>
<CAPTION>
---------------------------------------------------
For the Period 11/30/98 to 1/1/99
---------------------------------------------------
Projected Actual Difference
---------------------------------------------------
A B C=B-A
---------------------------------------------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ (32,500) $ -- 32,500
Cash Receipts:
Fee For Service Billings $ 125,000 $ 74,006 (50,994)
Claims & Capitation $ 1,000,000 $ 1,082,648 82,648
Reimbursement $ -- $ 151,737 151,737
Medicare & Collections $ -- $ -- --
---------------------------------------------------
TOTAL CASH RECEIPTS $ 1,125,000 $ 1,308,391 183,391
Less: Cash Disbursements:
Employee & Physician Payroll $ 1,350,000 $ 1,743,081 393,081
Catch-up payments to Doctors $ -- $ -- --
Insurance $ 48,000 $ 225,729 177,729
Claims & Capitation $ 80,000 $ 94,492 14,492
Patient Refunds $ -- $ 9,318 9,318
Rent $ 126,000 $ 108,486 (17,514)
Utilities $ 27,000 $ 49,235 22,235
Bank Lock Box $ -- $ -- --
Medical Supply $ 125,000 $ 149,832 24,832
Other $ 30,000 $ 248,131 218,131
---------------------------------------------------
Total Cash Disbursements $ 1,786,000 $ 2,628,304 $ 842,304
Financing Charges $ -- $ -- --
Net DIP Advance $ -- $ -- --
Net Cash Flow $ (661,000) $(1,319,913) (658,913)
Intercompany Transfers $ -- $ 1,319,913 1,319,913
ENDING CASH BALANCE $ (693,500) $ -- $ 693,500
---------------------------------------------------
</TABLE>
<PAGE> 10
TENTATIVES & CLOSURES
DIP Budget
DIP Projected vs. Actual Cash Flows
November 30, 1998 through January 1, 1999
<TABLE>
<CAPTION>
---------------------------------------------------
For the Period 11/30/98 to 1/1/99
---------------------------------------------------
Projected Actual Difference
---------------------------------------------------
A B C=B-A
---------------------------------------------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ 577,529 $ 13,313 (564,216)
Cash Receipts:
Fee For Service Billings $ 375,000 $ 494,259 119,259
Claims & Capitation $ 3,144,254 $ 3,089,875 (54,379)
Reimbursement $ -- $ 261,363 261,363
Medicare & Collections $ -- $ -- --
---------------------------------------------------
TOTAL CASH RECEIPTS $ 3,519,254 $ 3,845,497 326,243
Less: Cash Disbursements:
Employee & Physician Payroll $ 2,884,000 $ 3,147,745 263,745
Catch-up payments to Doctors $ 250,000 $ -- (250,000)
Insurance $ 1,013,000 $ 950,711 (62,289)
Claims & Capitation $ 155,000 $ 244,330 89,330
Patient Refunds $ -- $ -- --
Rent $ 297,500 $ 400,222 102,722
Utilities $ 55,000 $ 93,595 38,595
Bank Lock Box $ -- $ -- --
Medical Supply $ 72,000 $ 94,255 22,255
Other $ 250,000 $ 547,740 297,740
---------------------------------------------------
Total Cash Disbursements $ 4,976,500 $ 5,478,598 502,098
Agreed Cash Adjustments $ -- $ -- --
Less: Interest $ -- $ -- --
Net Cash Flow $(1,457,246) $(1,633,101) (175,855)
Intercompany Transfers $ -- $ 1,616,662 1,616,662
ENDING CASH BALANCE $(2,235,052) $ (3,126) 2,231,926
---------------------------------------------------
</TABLE>
Source: Information reflected above was obtained from the books and records of
FPA Medical Management, Inc.
<PAGE> 11
HEALTH PARTNERS, INC
DIP Budget
DIP Projected vs. Actual Cash Flows
November 30, 1998 through January 1, 1999
<TABLE>
<CAPTION>
--------------------------------------------------
For the Period 11/30/98 to 1/1/99
--------------------------------------------------
Projected Actual Difference
--------------------------------------------------
A B C=B-A
--------------------------------------------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ 1,266,750 $ 2,916,561 $ 1,649,811
Cash Receipts:
Fee For Service Billings $ 3,056,000 $ 2,784,260 $ (271,740)
Claims & Capitation $ 3,504,228 $ 3,480,386 $ (23,842)
Reimbursement $ 3,000,000 $ -- $(3,000,000)
Medicare & Collections $ -- $ -- $ --
--------------------------------------------------
TOTAL CASH RECEIPTS $ 9,560,228 $ 6,264,646 $(3,295,582)
Less: Cash Disbursements:
Employee & Physician Payroll $ 2,687,000 $ 2,497,218 $ (189,782)
Catch-up payments to Doctors $ -- $ -- $ --
Insurance $ 220,000 $ 211,275 $ (8,725)
Claims & Capitation $ 3,290,000 $ 1,954,788 $(1,335,212)
Patient Refunds $ 10,000 $ 6,794 $ (3,206)
Rent $ 285,630 $ 340,342 $ 54,712
Utilities $ 86,000 $ 60,228 $ (25,772)
Medical Supply $ 225,000 $ 209,797 $ (15,203)
Other $ 1,080,500 $ 733,147 $ (347,353)
--------------------------------------------------
Total Cash Disbursements $ 7,884,130 $ 6,013,589 $(1,870,541)
Agreed Cash Adjustments $ -- $ -- $ --
Less: Interest $ -- $ 1,528 $ 1,528
Net Cash Flow $ 1,676,098 $ 249,529 $(1,426,569)
Intercompany Transfers $ -- $(1,900,000) $(1,900,000)
ENDING CASH BALANCE $ 2,942,848 $ 1,266,090 $(1,676,758)
--------------------------------------------------
</TABLE>
GENERAL: HEALTH PARTNERS INC. IS REPORTED FOR CASH FLOW PURPOSES AS A STAND
ALONE ENTITY. THESE TRANSACTIONS ARE NOT INCLUDED AS A PART OF THE FPA MEDICAL
MANAGEMENT, INC. ROLL-UP.
