<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): March 18, 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 March 18, 1999, the Debtors filed with the United States Bankruptcy
Court for the District of Delaware their monthly operating report for the period
from February 1, 1999 through February 26, 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 February
1, 1999 through February 26, 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: March 31, 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 February 1, 1999 through
February 26, 1999.
4
<PAGE> 1
EXHIBIT 99.1
FPA MEDICAL MANAGEMENT, INC.
MATRIX OF REQUIRED ATTACHMENTS / BANK STATEMENTS
<TABLE>
<CAPTION>
FEBRUARY BANK DECEMBER BANK
DEBTORS STATEMENTS STATEMENTS COMMENTS
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Core Business Units:
Sterling Healthcare Group, Inc. X
Meridian X
Florida Humana & Clinics X
Health Partners Inc. X
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 February 1, 1999 through
February 26, 1999. "Required Attachments":
1. Depository Tax Receipts for payroll tax deposits into tax trust accounts are
included for the month of February.
2. Copies of most of the Debtors' bank statements for the month of February are
attached; copies of the balance of the February 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 month of
December are attached.
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.
<PAGE> 3
FPA MEDICAL MANAGEMENT, INC.
DIP Budget
DIP Projected vs. Actual Cash Flows
February 2, 1999 through February 26, 1999
<TABLE>
<CAPTION>
For the Period 2/2/99 to 2/26/99
----------------------------------------------
Projected (1) Actual (1) Difference
A B C=B-A
------------ ------------ ------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ -- $ (2,166,302) (2,166,302)
Cash Receipts:
Fee For Service Billings 14,830,000 12,790,849 (2,039,151)
Claims & Capitation 8,350,000 7,585,273 (764,727)
Reimbursement -- 18,639 18,639
Medicare & Collections 2,000,000 1,047,098 (952,902)
------------ ------------ ------------
TOTAL CASH RECEIPTS 25,180,000 21,441,859 (3,738,141)
Less: Cash Disbursements:
Employee & Physician Payroll (17,790,000) (17,864,246) (74,246)
Catch-up payments to Doctors -- -- --
Insurance (564,000) (978,078) (414,078)
Claims & Capitation (1,105,000) (260,881) 844,119
Patient Refunds (100,000) (70,498) 29,502
Rent (1,003,500) (1,109,126) (105,626)
Utilities (320,000) (332,970) (12,970)
Bank Lock-Box Account Fees -- -- --
Medical Supplies (372,600) (564,257) (191,657)
Other (2,240,000) (2,385,054) (145,054)
------------ ------------ ------------
Total Cash Disbursements (23,495,100) (23,565,110) (70,010)
Net Cash Flow 1,684,900 (2,123,251) (3,808,151)
Financing Charges (2) (374,706) (388,482) (13,776)
Collection of Notes -- --
Retention Costs (2) (975,000) (936,442) 38,558
Utility Company (Deposits)/Recoveries -- -- --
Professional Fee Retainers -- -- --
Professional Fees (2) (1,250,000) (1,605,803) (355,803)
Restructuring Expenses -- -- --
Repayment to HPI -- 240,000 240,000
Capital Expenditures (2) (300,000) -- 300,000
First Union CD/Deposit -- -- --
Restricted AWS Cash -- -- --
A/R Turned Over from Collection 580,000 89,492 (490,508)
Sale of Orange Coast -- -- --
Sale of Axminster -- 1,491,472 1,491,472
Sale of Other Assets 2,000,000 3,675,000 1,675,000
DIP Loan Repayment (4,580,000) (3,675,000) 905,000
DIP Loan Proceeds -- 4,375,000 4,375,000
Orange Coast Transaction Fees -- -- --
Orange Coast Post-Sale Disbursements -- (78,417) (78,417)
------------ ------------ ------------
Ending Cash Balance $ (3,214,806) $ (1,102,733) 2,112,073
------------ ------------ ------------
</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, 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
February 1, 1999 through February 26, 1999
<TABLE>
<CAPTION>
For the Period 2/1/99 to 2/26/99
----------------------------------------------
Projected Actual Difference
A B C=B-A
------------ ------------ ------------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ 1,246,709 $ (2,224,153) (3,470,862)
Cash Receipts:
Fee For Service Billings 13,200,000 10,751,417 (2,448,583)
Claims & Capitation -- -- --
Reimbursement -- -- --
Medicare & Collections 2,000,000 1,047,098 (952,902)
------------ ------------ ------------
TOTAL CASH RECEIPTS $ 15,200,000 $ 11,798,515 (3,401,485)
Less: Cash Disbursements:
Employee & Physician Payroll (12,000,000) 11,175,770 23,175,770
Catch-up payments to Doctors -- -- --
Insurance -- 37,297 37,297
Claims & Capitation -- -- --
Patient Refunds (100,000) 61,620 161,620
Rent (120,000) 116,036 236,036
Utilities (60,000) 19,519 79,519
Bank Lock Box -- -- --
Medical Supply (1,000) 3,492 4,492
Other (1,450,000) 1,242,506 2,692,506
------------ ------------ ------------
Total Cash Disbursements $(13,731,000) $ 12,656,240 26,387,240
Financing Charges -- -- --
Net DIP Advance -- -- --
Net Cash Flow 1,469,000 (857,725) (2,326,725)
Intercompany Transfers -- 1,854,497 1,854,497
ENDING CASH BALANCE $ 2,715,709 $ (1,227,381) (3,943,090)
------------ ------------ ------------
</TABLE>
<PAGE> 5
FLORIDA (CLINICS & HUMANA)
DIP Budget
DIP Projected vs. Actual Cash Flows
February 1, 1999 through February 26, 1999
<TABLE>
<CAPTION>
For the Period 2/1/99 to 2/26/99
------------------------------------------
Projected Actual Difference
A B C=B-A
----------- ----------- -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $(1,027,443) $ -- 1,027,443
Cash Receipts:
Fee For Service Billings 800,000 -- (800,000)
Claims & Capitation 2,300,000 -- (2,300,000)
Reimbursement -- -- --
Medicare & Collections -- 563,469 563,469
----------- ----------- -----------
TOTAL CASH RECEIPTS 3,100,000 563,469 (2,536,531)
Less: Cash Disbursements:
Employee & Physician Payroll 2,200,000 2,207,246 7,246
Catch-up payments to Doctors -- -- --
Insurance -- -- --
Claims & Capitation -- 2,037,987 2,037,987
Patient Refunds -- -- --
Rent 300,000 46,392 (253,608)
Utilities 200,000 -- (200,000)
Bank Lock Box -- 6,659 6,659
Medical Supply 200,000 276,935 76,935
Other 200,000 208,504 8,504
----------- ----------- -----------
Total Cash Disbursements 3,100,000 -- (3,100,000)
Agreed Cash Adjustments -- 275,379 275,379
Less: Interest -- -- --
Net Cash Flow -- -- --
Intercompany Transfers -- -- --
ENDING CASH BALANCE $(1,027,443) $ -- 1,027,443
----------- ----------- -----------
</TABLE>
<PAGE> 6
KANSAS CITY
DIP Budget
DIP Projected vs. Actual Cash Flows
February 1, 1999 through February 26, 1999
<TABLE>
<CAPTION>
For the Period 2/1/99 to 2/26/99
------------------------------------------
Projected Actual Difference
A B C=B-A
----------- ----------- -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ 2,661,000 $ -- (2,661,000)
Cash Receipts:
Fee For Service Billings 60,000 130,349 70,349
Claims & Capitation 2,900,000 2,544,384 (355,616)
Reimbursement -- -- --
Medicare & Collections -- -- --
----------- ----------- -----------
TOTAL CASH RECEIPTS $ 2,960,000 $ 2,674,733 (285,267)
Less: Cash Disbursements:
Employee & Physician Payroll 1,500,000 1,479,998 (20,002)
Catch-up payments to Doctors -- -- --
Insurance 60,000 129,839 69,839
Claims & Capitation -- -- --
Patient Refunds -- 309 309
Rent 235,000 245,883 10,883
Utilities 10,000 30,884 20,884
Bank Lock Box -- -- --
Medical Supply 40,000 58,457 18,457
Other 50,000 171,656 121,656
----------- ----------- -----------
Total Cash Disbursements $ 1,895,000 $ 2,117,026 222,026
Agreed Cash Adjustments -- -- --
Less: Interest -- -- --
Net Cash Flow 1,065,000 557,707 (507,293)
Intercompany Transfers -- (557,707) (557,707)
ENDING CASH BALANCE $ 3,726,000 $ -- (3,726,000)
----------- ----------- -----------
</TABLE>
<PAGE> 7
MERIDIAN
DIP Budget
DIP Projected vs. Actual Cash Flows
February 1, 1999 through February 26, 1999
<TABLE>
<CAPTION>
2/1/99 to 2/26/99
-------------------------------------------
Projected Actual Difference
A B C=B-A
----------- ----------- -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ (652,069) $ (5,718) 646,351
Cash Receipts:
Fee For Service Billings 380,000 463,204 83,204
Claims & Capitation 2,800,000 2,778,698 (21,302)
Reimbursement -- -- --
Medicare & Collections -- -- --
----------- ----------- -----------
TOTAL CASH RECEIPTS $ 3,180,000 $ 3,241,902 61,902
Less: Cash Disbursements:
Employee & Physician Payroll 1,600,000 1,483,900 (116,100)
Catch-up payments to Doctors -- -- --
Insurance -- -- --
Claims & Capitation 1,000,000 71,698 (928,302)
Patient Refunds -- 1,890 1,890
Rent 275,000 248,652 (26,348)
Utilities 25,000 36,258 11,258
Bank Lock Box -- -- --
Medical Supply 120,000 207,553 87,553
Other 300,000 257,875 (42,125)
----------- ----------- -----------
Total Cash Disbursements $ 3,320,000 $ 2,307,826 (1,012,174)
Financing Charges -- -- --
Net DIP Advance -- -- --
Net Cash Flow (140,000) 934,076 1,074,076
Intercompany Transfers -- (868,220) (868,220)
ENDING CASH BALANCE $ (792,069) $ 60,138 852,207
----------- ----------- -----------
</TABLE>
<PAGE> 8
NORTH CAROLINA
DIP Budget
DIP Projected vs. Actual Cash Flows
February 1, 1999 through February 26, 1999
<TABLE>
<CAPTION>
For the Period 2/1/99 to 2/26/99
---------------------------------------
Projected Actual Difference
A B C=B-A
--------- --------- ---------
<S> <C> <C> <C>
INITIAL CASH BALANCE $(797,052) $ -- 797,052
Cash Receipts:
Fee For Service Billings 160,000 124,812 (35,188)
Claims & Capitation 175,000 163,008 (11,992)
Reimbursement -- -- --
Medicare & Collections -- -- --
--------- --------- ---------
TOTAL CASH RECEIPTS $ 335,000 $ 287,820 (47,180)
Less: Cash Disbursements:
Employee & Physician Payroll 320,000 349,549 29,549
Catch-up payments to Doctors -- -- --
Insurance 15,000 10,150 (4,850)
Claims & Capitation -- -- --
Patient Refunds -- -- --
Rent 52,000 72,331 20,331
Utilities 20,000 18,862 (1,138)
Bank Lock Box -- -- --
Medical Supply 10,000 9,883 (117)
Other 60,000 57,288 (2,712)
--------- --------- ---------
Total Cash Disbursements $ 477,000 $ 518,063 41,063
Agreed Cash Adjustments -- -- --
Less: Interest -- -- --
Net Cash Flow (142,000) (230,243) (88,243)
Intercompany Transfers -- -- --
ENDING CASH BALANCE $(939,052) $(230,243) 708,809
--------- --------- ---------
</TABLE>
<PAGE> 9
SAN ANTONIO (GONZABA)
DIP Budget
DIP Projected vs. Actual Cash Flows
February 1, 1999 through February 26, 1999
<TABLE>
<CAPTION>
For the Period 2/1/99 to 2/26/99
-------------------------------------------
Projected Actual Difference
A B C=B-A
----------- ----------- -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $(1,340,500) $ -- 1,340,500
Cash Receipts:
Fee For Service Billings -- 64,839 64,839
Claims & Capitation -- 308,410 308,410
Reimbursement -- -- --
Medicare & Collections -- -- --
----------- ----------- -----------
TOTAL CASH RECEIPTS $ -- $ 373,249 373,249
Less: Cash Disbursements:
Employee & Physician Payroll -- 602,933 602,933
Catch-up payments to Doctors -- -- --
Insurance -- 36,046 36,046
Claims & Capitation -- 48,244 48,244
Patient Refunds -- 20 20
Rent -- 125,160 125,160
Utilities -- 12,570 12,570
Bank Lock Box -- -- --
Medical Supply -- 58,295 58,295
Other 100,000 128,248 28,248
----------- ----------- -----------
Total Cash Disbursements $ 100,000 $ 1,011,516 911,516
Financing Charges -- -- --
Net DIP Advance -- -- --
Net Cash Flow (100,000) (638,267) (538,267)
Intercompany Transfers -- 638,267 638,267
ENDING CASH BALANCE $(1,440,500) $ -- 1,440,500
----------- ----------- -----------
</TABLE>
<PAGE> 10
HEALTH PARTNERS, INC
DIP Budget
DIP Projected vs. Actual Cash Flows
February 1, 1999 through February 26, 1999
<TABLE>
<CAPTION>
For the Period 2/1/99 to 2/26/99
-------------------------------------------
Projected Actual Difference
A B C=B-A
----------- ----------- -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $ 1,146,446 $ 2,366,876 $ 1,220,430
Cash Receipts:
Fee For Service Billings 2,692,000 807,288 (1,884,712)
Claims & Capitation 3,350,000 268,867 (3,081,133)
Reimbursement -- -- --
Medicare & Collections -- -- --
----------- ----------- -----------
TOTAL CASH RECEIPTS 6,042,000 1,076,155 (4,965,845)
Less: Cash Disbursements:
Employee & Physician Payroll 2,200,000 926,582 (1,273,418)
Catch-up payments to Doctors -- -- --
Insurance 170,000 8,489 (161,511)
Claims & Capitation 2,700,000 847,032 (1,852,968)
Patient Refunds 8,000 9,837 1,837
Rent 285,650 147,419 (138,231)
Utilities 60,000 28,674 (31,326)
Bank Lock Box Account Fees -- --
Medical Supply 170,000 54,392 (115,608)
Other 800,000 277,698 (522,302)
----------- ----------- -----------
Total Cash Disbursements $ 6,393,650 $ 2,300,123 $(4,093,527)
Agreed Cash Adjustments -- -- --
Less: Interest -- -- --
Net Cash Flow (351,650) (1,223,968) (872,318)
Intercompany Transfers -- (240,000) (240,000)
ENDING CASH BALANCE $ 794,796 $ 902,908 $ 108,112
----------- ----------- -----------
</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
February 1 through February 26, 1999
<TABLE>
<CAPTION>
For the Period 2/1/99 to 2/26/99
-------------------------------------------
Projected Actual Difference
A B C=B-A
----------- ----------- -----------
<S> <C> <C> <C>
INITIAL CASH BALANCE $(3,544,217) $ -- $ 3,544,217
Cash Receipts:
Fee For Service Billings 150,000 622,802 472,802
Claims & Capitation -- -- --
Reimbursement -- 18,639 18,639
Medicare & Collections -- -- --
----------- ----------- -----------
TOTAL CASH RECEIPTS 150,000 641,441 491,441
Less: Cash Disbursements:
Employee & Physician Payroll 120,000 700,726 580,726
Catch-up payments to Doctors -- -- --
Insurance 489,000 717,625 228,625
Claims & Capitation -- -- --
Patient Refunds -- -- --
Rent 16,500 14,059 (2,441)
Utilities 5,000 6,373 1,373
Bank Lock Box -- -- --
Medical Supply -- 50,000 50,000
Other 40,000 232,490 192,490
----------- ----------- -----------
Total Cash Disbursements 670,500 1,721,273 1,050,773
Less: Interest -- -- --
Net Cash Flow (520,500) -- 520,500
Net DIP Advance -- (1,079,832) (1,079,832)
Intercompany Transfers -- 1,079,832 1,079,832
ENDING CASH BALANCE $(4,064,717) $ -- $ 4,064,717
----------- ----------- -----------
</TABLE>
<PAGE> 12
CLOSURES
DIP Budget
DIP Projected vs. Actual Cash Flows
February 1, 1999 through February 26, 1999
<TABLE>
<CAPTION>
For the Period 2/1/99 to 2/26/99
---------------------------------------
Projected Actual Difference
A B C=B-A
--------- --------- ---------
<S> <C> <C> <C>
INITIAL CASH BALANCE $(466,279) $ 63,569 529,848
Cash Receipts:
Fee For Service Billings 80,000 69,957 (10,043)
Claims & Capitation 175,000 146,996 (28,004)
Reimbursement -- -- --
Medicare & Collections -- -- --
--------- --------- ---------
TOTAL CASH RECEIPTS $ 255,000 $ 216,953 (38,047)
Less: Cash Disbursements:
Employee & Physician Payroll 50,000 33,383 (16,617)
Catch-up payments to Doctors -- -- --
Insurance -- 729 729
Claims & Capitation 105,000 140,939 35,939
Patient Refunds -- -- --
Rent 5,000 10,070 5,070
Utilities -- -- --
Bank Lock Box -- -- --
Medical Supply 1,600 -- (1,600)
Other 40,000 19,612 (20,388)
--------- --------- ---------
Total Cash Disbursements $ 201,600 $ 204,733 3,133
Agreed Cash Adjustments -- --
Less: Interest -- -- --
Net Cash Flow 53,400 12,220 (41,180)
Intercompany Transfers -- (11,279) (11,279)
ENDING CASH BALANCE $(412,879) $ 64,510 477,389
--------- --------- ---------
</TABLE>
Source: Information reflected above was obtained from the books
and records of FPA Medical Management, Inc.
