<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): April 15, 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 April 15, 1999, the Debtors filed with the United States
Bankruptcy Court for the District of Delaware their monthly operating report for
the period from March 1, 1999 through April 2, 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
March 1, 1999 through April 2, 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: April 29, 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 March 1, 1999 through
April 2, 1999.
4
<PAGE> 1
EXHIBIT 99.1
FPA MEDICAL MANAGEMENT, INC.
MATRIX OF REQUIRED ATTACHMENTS / BANK STATEMENTS
<TABLE>
<CAPTION>
DEBTORS MARCH BANK STATEMENTS COMMENTS
- --------------------------------------------------------------------------------
<S> <C> <C>
Core Business Units:
Sterling Healthcare Group, Inc. X
Meridian X
Florida Humana & Clinics X
Health Partners Inc.
Non-Core Business Units
Illinois MSO X
Kansas City X
</TABLE>
<PAGE> 2
Debtor: FPA MEDICAL MANAGEMENT, INC.
Case Number: 98-01596PJW THROUGH 98-01685PJW
Notes to Monthly Operating Report for the period March 1, 1999 through April 2,
1999. "Required Attachments":
1. Depository Tax Receipts for payroll tax deposits into tax trust accounts are
included for the month of March.
2. Copies of most of the Debtors' bank statements for the month of March are
attached; copies of the balance of the March statements not yet received from
the Banks and/or Debtors will be forwarded upon receipt.
3. The Debtors' most recently filed Income Tax Return for 1997 is included in
the filing for the period November 30, 1998 through January 1, 1999 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.
5. The Debtor's most recent unaudited consolidated financial statements, for the
month of February, 1999, are included in this Monthly Operating Report. Also
included are unaudited financial statements for each of the core business
subsidiaries for the month of February, 1999.
<PAGE> 3
FPA MEDICAL MANAGEMENT, INC.
DIP Budget
DIP Projected vs. Actual Cash Flows
March 1, 1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected (1) Actual (1) Difference
------------- ---------- ----------
A B C=B-A
------------ ------------ ------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ (1,102,733) (1,102,733)
Cash Receipts:
Fee For Service Billings 16,800,000 18,019,146 1,219,146
Claims & Capitation 9,380,300 7,473,508 (1,906,792)
Reimbursement 100,000 199,054 99,054
Medicare & Collections 2,250,000 1,564,786 (685,214)
------------ ------------ ------------
TOTAL CASH RECEIPTS 28,530,300 27,256,494 (1,273,806)
Less: Cash Disbursements:
Employee & Physician Payroll 16,715,940 17,236,162 520,222
Catch-up payments to Doctors -- -- --
Insurance 946,000 1,479,071 533,071
Claims & Capitation 1,078,000 2,183,351 1,105,351
Patient Refunds 125,000 116,773 (8,227)
Rent 1,025,000 1,102,102 77,102
Utilities 458,000 307,487 (150,513)
Bank Lock-Box Account Fees -- -- --
Medical Supplies 480,250 175,969 (304,281)
Other 2,440,000 1,139,298 (1,300,702)
------------ ------------ ------------
Total Cash Disbursements 23,268,190 23,740,213 472,023
Net Cash Flow 5,262,110 3,516,281 (1,745,829)
Financing Charges (2) (806,503) (369,427) 437,076
Collection of Notes -- --
Retention Costs (2) -- -- --
Utility Company (Deposits)/Recoveries -- -- --
Professional Fee Retainers -- -- --
Professional Fees (2) (1,250,000) (516,579) 733,421
Restructuring Expenses -- (842,326) (842,326)
Repayment to HPI -- (460,512) (460,512)
Capital Expenditures (2) -- -- --
First Union CD/Deposit -- -- --
Restricted AWS Cash -- -- --
A/R Turned Over from Collection 640,000 30,602 (609,398)
Sale of Orange Coast -- -- --
Sale of Axminster -- -- --
Sale of Other Assets -- 769,045 769,045
DIP Loan Repayment (2,890,000) -- 2,890,000
DIP Loan Proceeds 2,400,895 218,928 (2,181,967)
Orange Coast Transaction Fees -- -- --
Orange Coast Post-Sale Disbursements (400,000) (28,750) 371,250
------------ ------------ ------------
Ending Cash Balance $ 2,956,502 $ 1,214,529 (1,741,973)
------------ ------------ ------------
</TABLE>
(1) The projected data reflected herein is based upon the Budgets submitted to
the Court in the DIP Loan Agreement dated July 20, 1998, and as amended from
time to time thereafter. 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, 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
March 1, 1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected Actual Difference
------------ ------------ --------
A B C=B-A
------------ ------------ --------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ (1,227,381) (1,227,381)
Cash Receipts:
Fee For Service Billings 14,500,000 14,453,159 (46,841)
Claims & Capitation -- -- --
Reimbursement -- -- --
Medicare & Collections 2,250,000 1,564,786 (685,214)
------------ ------------ ---------
TOTAL CASH RECEIPTS $ 16,750,000 $ 16,017,945 (732,055)
Less: Cash Disbursements:
Employee & Physician Payroll 10,075,000 10,678,629 603,629
Catch-up payments to Doctors -- -- --
Insurance -- 53,052 53,052
Claims & Capitation -- -- --
Patient Refunds 125,000 111,423 (13,577)
Rent 130,000 113,420 (16,580)
Utilities 40,000 4,151 (35,849)
Bank Lock Box -- -- --
Medical Supply 2,000 -- (2,000)
Other 1,400,000 248,535 (1,151,465)
------------ ------------ ---------
Total Cash Disbursements $ 11,772,000 $ 11,209,210 (562,790)
Financing Charges -- -- --
Net DIP Advance -- -- --
Net Cash Flow 4,978,000 4,808,735 (169,265)
Intercompany Transfers -- (1,863,700) (1,863,700)
ENDING CASH BALANCE $ 4,978,000 $ 1,717,654 (3,260,346)
</TABLE>
<PAGE> 5
FLORIDA (CLINICS & HUMANA)
DIP Budget
DIP Projected vs. Actual Cash Flows
March 1, 1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected Actual Difference
------------ ------------ -----------
A B C=B-A
------------ ------------ -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ -- --
Cash Receipts:
Fee For Service Billings 1,000,000 953,436 (46,564)
Claims & Capitation 2,150,000 1,403,805 (746,195)
Reimbursement -- -- --
Medicare & Collections -- -- --
----------- ----------- ----------
TOTAL CASH RECEIPTS 3,150,000 2,357,241 (792,759)
Less: Cash Disbursements:
Employee & Physician Payroll 2,100,000 1,852,120 (247,880)
Catch-up payments to Doctors -- -- --
Insurance 150,000 247,149 97,149
Claims & Capitation -- -- --
Patient Refunds -- -- --
Rent 280,000 297,118 17,118
Utilities 275,000 118,609 (156,391)
Bank Lock Box -- -- --
Medical Supply 220,000 51,229 (168,771)
Other 250,000 233,424 (16,576)
----------- ----------- ----------
Total Cash Disbursements 3,275,000 2,799,649 (475,351)
Agreed Cash Adjustments -- -- --
Less: Interest -- -- --
Net Cash Flow (125,000) (442,408) (317,408)
Intercompany Transfers -- 442,408 442,408
ENDING CASH BALANCE $ (125,000) $ -- 125,000
</TABLE>
<PAGE> 6
KANSAS CITY
DIP Budget
DIP Projected vs. Actual Cash Flows
March 1, 1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected Actual Difference
------------ ------------ -----------
A B C=B-A
------------ ------------ -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ -- --
Cash Receipts:
Fee For Service Billings 200,000 187,914 (12,086)
Claims & Capitation 2,800,000 2,485,641 (314,359)
Reimbursement -- -- --
Medicare & Collections -- -- --
----------- ----------- ----------
TOTAL CASH RECEIPTS $ 3,000,000 $ 2,673,555 (326,445)
Less: Cash Disbursements:
Employee & Physician Payroll 1,480,000 1,514,132 34,132
Catch-up payments to Doctors -- -- --
Insurance 145,000 280,494 135,494
Claims & Capitation -- -- --
Patient Refunds -- -- --
Rent 235,000 245,423 10,423
Utilities 25,000 15,633 (9,367)
Bank Lock Box -- -- --
Medical Supply 30,000 23,048 (6,952)
Other 120,000 72,588 (47,412)
----------- ----------- ----------
Total Cash Disbursements $ 2,035,000 $ 2,151,318 116,318
Agreed Cash Adjustments -- -- --
Less: Interest -- -- --
Net Cash Flow 965,000 522,237 (442,763)
Intercompany Transfers -- (522,237) (522,237)
ENDING CASH BALANCE $ 965,000 $ -- (965,000)
</TABLE>
<PAGE> 7
MERIDIAN
DIP Budget
DIP Projected vs. Actual Cash Flows
March 1, 1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected Actual Difference
------------ ------------ -----------
A B C=B-A
------------ ------------ -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ 60,138 60,138
Cash Receipts:
Fee For Service Billings 600,000 583,745 (16,255)
Claims & Capitation 3,130,300 2,943,046 (187,254)
Reimbursement -- -- --
Medicare & Collections -- -- --
----------- ----------- ----------
TOTAL CASH RECEIPTS $ 3,730,300 $ 3,526,791 (203,509)
Less: Cash Disbursements:
Employee & Physician Payroll 1,780,940 1,491,387 (289,553)
Catch-up payments to Doctors -- -- --
Insurance 120,000 129,165 9,165
Claims & Capitation 958,000 1,963,340 1,005,340
Patient Refunds -- 5,197 5,197
Rent 250,000 254,869 4,869
Utilities 65,000 137,240 72,240
Bank Lock Box -- -- --
Medical Supply 150,000 64,649 (85,351)
Other 375,000 297,294 (77,706)
----------- ----------- ----------
Total Cash Disbursements $ 3,698,940 $ 4,343,141 644,201
Financing Charges -- -- --
Net DIP Advance -- -- --
Net Cash Flow 31,360 (816,350) (847,710)
Intercompany Transfers -- 235,941 235,941
ENDING CASH BALANCE $ 31,360 $ (520,271) (551,631)
</TABLE>
<PAGE> 8
NORTH CAROLINA
DIP Budget
DIP Projected vs. Actual Cash Flows
March 1, 1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected Actual Difference
------------ ------------ -----------
A B C=B-A
------------ ------------ -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ -- --
Cash Receipts:
Fee For Service Billings 150,000 75,759 (74,241)
Claims & Capitation 225,000 149,158 (75,842)
Reimbursement -- -- --
Medicare & Collections -- -- --
--------- --------- ---------
TOTAL CASH RECEIPTS $ 375,000 $ 224,917 (150,083)
Less: Cash Disbursements:
Employee & Physician Payroll 360,000 359,036 (964)
Catch-up payments to Doctors -- -- --
Insurance 15,000 25,292 10,292
Claims & Capitation -- -- --
Patient Refunds -- -- --
Rent 35,000 54,582 19,582
Utilities 24,000 17,534 (6,466)
Bank Lock Box -- -- --
Medical Supply 20,000 9,085 (10,915)
Other 100,000 13,949 (86,051)
--------- --------- ---------
Total Cash Disbursements $ 554,000 $ 479,478 (74,522)
Agreed Cash Adjustments -- -- --
Less: Interest -- -- --
Net Cash Flow (179,000) (254,561) (75,561)
Intercompany Transfers -- 254,561 254,561
ENDING CASH BALANCE $(179,000) $ -- 179,000
</TABLE>
<PAGE> 9
SAN ANTONIO (GONZABA)
DIP Budget
DIP Projected vs. Actual Cash Flows
March 1,1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected Actual Difference
------------ ------------ -----------
A B C=B-A
------------ ------------ -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ -- --
Cash Receipts:
Fee For Service Billings 100,000 284,803 184,803
Claims & Capitation 900,000 357,073 (542,927)
Reimbursement -- 65,000 65,000
Medicare & Collections -- -- --
---------- ---------- ---------
TOTAL CASH RECEIPTS $1,000,000 $ 706,876 (293,124)
Less: Cash Disbursements:
Employee & Physician Payroll 450,000 592,116 142,116
Catch-up payments to Doctors -- -- --
Insurance 27,000 38,122 11,122
Claims & Capitation -- 15,856 15,856
Patient Refunds -- 153 153
Rent 80,000 80,721 721
Utilities 20,000 13,423 (6,577)
Bank Lock Box -- -- --
Medical Supply 56,250 27,958 (28,292)
Other 50,000 24,194 (25,806)
---------- ---------- ---------
Total Cash Disbursements $ 683,250 $ 792,543 109,293
Financing Charges -- -- --
Net DIP Advance -- -- --
Net Cash Flow 316,750 (85,667) (402,417)
Intercompany Transfers -- 85,667 85,667
ENDING CASH BALANCE $ 316,750 $ -- (316,750)
</TABLE>
<PAGE> 10
HEALTH PARTNERS, INC
DIP Budget
DIP Projected vs. Actual Cash Flows
March 1, 1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected Actual Difference
------------ ------------ ------------
A B C=B-A
------------ ------------ ------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ 3,139,791 $ 902,908 $(2,236,883)
Cash Receipts:
Fee For Service Billings 1,300,000 758,708 (541,292)
Claims & Capitation 400,000 297,022 (102,978)
Reimbursement -- -- --
Medicare & Collections -- -- --
----------- ----------- -----------
TOTAL CASH RECEIPTS 1,700,000 1,055,730 (644,270)
Less: Cash Disbursements:
Employee & Physician Payroll 1,060,000 992,971 (67,029)
Catch-up payments to Doctors -- -- --
Insurance 25,000 54,166 29,166
Claims & Capitation -- -- --
Patient Refunds -- 1,006 1,006
Rent 148,644 82,654 (65,990)
Utilities 43,000 9,701 (33,299)
Bank Lock Box Account Fees -- --
Medical Supply 235,000 24,812 (210,188)
Other 200,000 256,780 56,780
----------- ----------- -----------
Total Cash Disbursements $ 1,711,644 $ 1,422,090 $ (289,554)
Agreed Cash Adjustments -- -- --
Less: Interest -- (1,264) (1,264)
Net Cash Flow (11,644) (365,096) (353,452)
Intercompany Transfers -- 460,512 460,512
ENDING CASH BALANCE $ 3,128,147 $ 998,324 $(2,129,823)
</TABLE>
Note: 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.
<PAGE> 11
CORPORATE
DIP Budget
DIP Projected vs. Actual Cash Flows
March 1, 1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected Actual Difference
------------ ------------ ------------
A B C=B-A
------------ ------------ ------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ -- $ --
Cash Receipts:
Fee For Service Billings 150,000 1,404,437 1,254,437
Claims & Capitation -- -- --
Reimbursement 100,000 134,054 34,054
Medicare & Collections -- -- --
----------- ----------- -----------
TOTAL CASH RECEIPTS 250,000 1,538,491 1,288,491
Less: Cash Disbursements:
Employee & Physician Payroll 438,000 715,725 277,725
Catch-up payments to Doctors -- -- --
Insurance 489,000 705,797 216,797
Claims & Capitation -- -- --
Patient Refunds -- -- --
Rent 10,000 8,443 (1,557)
Utilities 9,000 1,025 (7,975)
Bank Lock Box -- -- --
Medical Supply -- -- --
Other 95,000 202,098 107,098
----------- ----------- -----------
Total Cash Disbursements 1,041,000 1,633,088 592,088
Less: Interest -- -- --
Net Cash Flow (791,000) (94,597) 696,403
Net DIP Advance -- -- --
Intercompany Transfers -- 94,597 94,597
ENDING CASH BALANCE $ (791,000) $ -- $ 791,000
</TABLE>
<PAGE> 12
CLOSURES
DIP Budget
DIP Projected vs. Actual Cash Flows
March 1, 1999 through April 2, 1999
<TABLE>
<CAPTION>
For the period 3/1/99 to 4/2/99
-------------------------------
Projected Actual Difference
------------ ------------ -----------
A B C=B-A
------------ ------------ -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ 64,510 64,510
Cash Receipts:
Fee For Service Billings 100,000 75,893 (24,107)
Claims & Capitation 175,000 134,785 (40,215)
Reimbursement -- -- --
Medicare & Collections -- -- --
--------- --------- -------
TOTAL CASH RECEIPTS $ 275,000 $ 210,678 (64,322)
Less: Cash Disbursements:
Employee & Physician Payroll 32,000 33,017 1,017
Catch-up payments to Doctors -- -- --
Insurance -- -- --
Claims & Capitation 120,000 204,155 84,155
Patient Refunds -- -- --
Rent 5,000 47,398 42,398
Utilities -- -- --
Bank Lock Box -- -- --
Medical Supply 2,000 -- (2,000)
Other 50,000 47,216 (2,784)
--------- --------- -------
Total Cash Disbursements $ 209,000 $ 331,786 122,786
Agreed Cash Adjustments 0 -- --
Less: Interest -- -- --
Net Cash Flow 66,000 (121,108) (187,108)
Intercompany Transfers -- 73,744 73,744
ENDING CASH BALANCE $ 66,000 $ 17,146 (48,854)
</TABLE>
Source: Information reflected above was obtained from the books and records of
FPA Medical Management, Inc.
