<PAGE> 1
FORM 10-QSB
(Mark One)
/ X / QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1996
--------------
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______________ to _____________.
COMMISSION FILE NUMBER 33-94826-NY
--------------
PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
(Name of small business issuer as specified in its charter)
<TABLE>
<S> <C>
New Jersey 22-3273637
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Princeton Pike Corporate Center, 1009 Lenox Drive, Lawrenceville, NJ 08648
(Address of principal executive offices) (Zip Code)
</TABLE>
Issuer's telephone number: (609)-896-1233
Check whether the issuer (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter
period that the registrant was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days. Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of share outstanding of each of the issuer's classes of common
equity, as of the latest practicable date: As of May 5, 1996, there were
3,512 shares of Common Stock outstanding.
Transitional Small Business Disclosure Format (Check one): Yes No X
----- -----
<PAGE> 2
PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
INDEX TO FORM 10-QSB
<TABLE>
<S> <C>
PART I - FINANCIAL INFORMATION
ITEM 1. Financial Statements
Balance Sheets as of March 31, 1996 and December 31, 1995 3
Statements of Operations for the Three Months Ended
March 31, 1996 and 1995 4
Statements of Shareholders' Equity for the Three Months Ended
March 31, 1996 and the Year Ended December 31, 1995 5
Statements of Cash Flows for the Three Months Ended
March 31, 1996 and 1995 6
Notes to Financial Statements 7
ITEM 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations 8
PART II - OTHER INFORMATION
ITEM 6. Reports on Form 8-K 10
Exhibits 11
Signatures
</TABLE>
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
BALANCE SHEETS
<TABLE>
<CAPTION>
MARCH 31, DECEMBER 31,
1996 1995
- - - --------------------------------------------------------------------------------------------------
(UNAUDITED)
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 4,491,051 $ 5,308,465
Short-term investments 3,954,334 3,980,627
Advances to management company 27,645 23,723
Prepaid and other assets 348,204 228,627
-------------- ---------------
TOTAL CURRENT ASSETS 8,821,234 9,541,442
Investments 561,532 565,723
Furniture and equipment, net 1,750,018 1,757,018
Deferred offering costs 600,000 450,000
Other assets 50,000 50,000
-------------- ---------------
TOTAL ASSETS $ 11,782,784 $ 12,364,183
============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable $ 496,389 $ 255,159
Accrued expenses 847,889 576,696
Medical costs payable 74,302 1,862
Other liabilities 12,589 15,433
-------------- ---------------
TOTAL LIABILITIES 1,431,169 849,150
-------------- ---------------
SHAREHOLDERS' EQUITY
Common Stock, subject to redemption
(no par; 20,000 authorized; 3,515
and 3,515 issued and outstanding) 17,575,000 17,575,000
Common stock subscribed 1,320,000 -
Paid in capital 31,908 24,838
Net unrealized gains on investments 9,173 21,645
Retained deficit (8,584,466) (6,106,450)
-------------- ---------------
TOTAL SHAREHOLDERS' EQUITY 10,351,615 11,515,033
-------------- ---------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 11,782,784 $ 12,364,183
============== ===============
</TABLE>
See accompanying note.
3
<PAGE> 4
PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE FOR THE THREE
MONTHS ENDED MONTHS ENDED
MARCH 31, 1996 MARCH 31, 1995
- - - -----------------------------------------------------------------------------------------
<S> <C> <C>
REVENUE
Premiums earned $ 93,156 $ -
Interest income, net 127,277 198,031
Other revenue 396 -
-------------------- -----------------
TOTAL REVENUE 220,829 198,031
-------------------- -----------------
EXPENSES
Medical costs 79,563 -
Professional services 1,112,949 378,353
Compensation and benefits 889,187 199,165
General and administrative 567,868 331,761
Insurance 49,278 6,004
-------------------- -----------------
TOTAL EXPENSES INCURRED 2,698,845 915,283
-------------------- -----------------
NET LOSS $ (2,478,016) $ (717,252)
==================== =================
Net loss per common share $ (681) $ (202)
==================== =================
</TABLE>
See accompanying note.
4
<PAGE> 5
PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
STATEMENTS OF SHAREHOLDERS' EQUITY
<TABLE>
<CAPTION>
NET
UNREALIZED TOTAL
COMMON STOCK PAID IN GAINS ON ACCUMULATED SHAREHOLDERS'
COMMON STOCK SUBSCRIBED CAPITAL INVESTMENTS DEFICIT EQUITY
- - - ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
BALANCE AT DECEMBER 31, $ 17,750,000 $ -0- $ -0- $ -0- $ (1,440,338) $ 16,309,662
1994
Common stock redeemed
(35 shares) (175,000) 24,838 (150,162)
Change in net unrealized
gains 21,645 21,645
Net loss (4,666,112) (4,666,112)
------------ ----------- -------- --------- ------------- ------------
BALANCE AT DECEMBER 31,
1995 17,575,000 -0- 24,838 21,645 (6,106,450) 11,515,033
============ =========== ======== ========= ============= ============
Common stock subscribed 1,320,000 1,320,000
Common stock redeemed 7,070 7,070
Change in net unrealized
gains (12,472) (12,472)
Net loss (2,478,016) (2,478,016)
------------ ----------- -------- --------- ------------- ------------
BALANCE AT MARCH 31, 1996
(UNAUDITED) $ 17,575,000 $ 1,320,000 $ 31,908 $ 9,173 $ (8,584,466) $ 10,351,615
============ =========== ======== ========= ============= ============
</TABLE>
See accompanying note.
5
<PAGE> 6
PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
STATEMENTS OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
FOR THE THREE FOR THE THREE
MONTHS ENDED MONTHS ENDED
MARCH 31, 1996 MARCH 31, 1995
- - - --------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss $ (2,478,016) $ (717,252)
Adjustment to reconcile net loss to net cash used for
operating activities:
Depreciation and amortization 139,572 2,490
Decrease (increase) in advances to management
company (3,922) 161,967
Increase in prepaid and other assets (119,577) (18,545)
Increase (decrease) in accounts payable 241,230 (20,968)
Increase in accrued expenses 271,193 -
Increase in medical costs payable 72,440 -
Increase in payable to management company 52,795
Decrease in other liabilities (2,844) -
----------------- ----------------
NET CASH USED IN OPERATING ACTIVITIES (1,879,924) (539,513)
----------------- ----------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of equipment (114,560) (51,502)
Proceeds from investments matured 4,135,429
----------------- ----------------
NET CASH PROVIDED (USED) IN INVESTING ACTIVITIES (114,560) 4,083,927
----------------- ----------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Common stock subscribed 1,320,000 -
Increase in deferred offering costs (150,000) -
Redemption of common stock 7,070 -
----------------- ----------------
NET CASH PROVIDED BY FINANCING ACTIVITIES 1,177,070 -
----------------- ----------------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (817,414) 3,544,414
Cash and cash equivalents, beginning of period 5,308,465 3,824,277
----------------- ----------------
CASH AND CASH EQUIVALENTS, END OF PERIOD $ 4,491,051 $ 7,368,691
================= ================
</TABLE>
See accompanying note.
6
<PAGE> 7
PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
NOTES TO FINANCIAL STATEMENTS
1. UNAUDITED FINANCIAL STATEMENTS
The financial information for the quarters ended March 31, 1996 and 1995
included herein is unaudited. Such information includes all adjustments,
consisting of a normal and recurring nature, which in the opinion of
management, are necessary for a fair presentation of the Company's Balance
Sheets and Statements of Operations and Cash Flows in accordance with generally
accepted accounting principles. Such information should be read in conjunction
with Management's Discussion and Analysis and the Notes to Financial Statements
Incorporated by reference to the Company's Annual Report on Form 10-KSB for the
year ended December 31, 1995.
2. COMMON STOCK SUBSCRIBED
Common Stock Subscribed represents shares sold as part of the Company's second
offering for which both a subscription agreement and cash have been received as
of March 31, 1996. These shares will be issued upon the expiration of the
offering period. For the three months ended March 31, 1996, the calculation
for "Net Loss per Common Share" includes the weighted average number of shares
subscribed through the second offering.
7
<PAGE> 8
ITEM 2. MANAGEMENT DISCUSSION AND ANALYSIS
GENERAL
The Company's products consist of HMO plans for the small (less than 50
employees) and large business markets whereby the members receive comprehensive
medical coverage in exchange for a prepaid fixed monthly premium.
The Company received its Certificate of Authority to operate as an HMO in five
counties of New Jersey (Bergen, Essex, Hudson, Passaic and Union) on August 28,
1995 and commenced marketing its HMO product in this area in November, 1995.
On January 29, 1996, the Company's amendment to its Certificate of Authority to
operate as an HMO in the remaining counties of New Jersey was approved,
licensing the Company as an HMO in all of New Jersey.
During the first quarter of 1996, the Company focused its efforts specifically
on membership growth, additional capitalization and continued network
development. The Company also focused on generating additional revenue
opportunities for the Company.
As part of the efforts to increase membership, the Company has finalized
agreements with thirteen (13) general agents and several independent brokers to
begin marketing the Company's products. During the first quarter, the Company
began its advertising initiatives placing print ads, bill boards and running
commercials in selected areas. With these programs in place, the Company
anticipates increasing membership growth.
Beginning in the fourth quarter of 1995, the Company began expending
significant effort in increasing its capital base and expanding its network.
On November 9, 1995, the Company commenced a secondary offering for the purpose
of expanding the Company's existing network of physicians, expanding the
Company's programs and infrastructure and enhancing the Company's capital
position. The Company has made available 10,000 shares of stock at a price of
$5,500 per share to physicians who practice in New Jersey. The original
offering period expired on February 9, 1996, at which time the Board voted to
extend the offering for an additional sixty day term. On April 4, 1996, the
Board extended the offering period for the second and final optional sixty day
term. The offering period will expire on June 6, 1996. As of May 6, 1996, the
Company has received 556 subscription agreements, amounting to $3,058,000 of
additional capital.
The Company intends to execute a Physician Participation Agreement with each
physician shareholder from the second offering meeting the credentialing
requirements. Prior to entering into such agreements a thorough review of
credentials and qualifications is conducted to ensure the physicians meet
minimum standards for participation in the Company's network. The Company has
begun the process of credentialing the physicians from the second offering.
Currently the Company has executed agreements with 3,274 participating
physicians. Over 92% of the shareholders from the initial offering have been
credentialled.
The Company has continued to expand its contracting with acute care
institutions. During the first quarter of 1996, the Company contracted with
five additional acute care institutions. The Company has now contracted with
seventy-five (75) of the state's eighty-four (84) acute care institutions,
representing nearly 90% of all New Jersey hospitals. It is the Company's
intention to aggressively seek contracts with the remaining hospitals.
During April of 1996, New Jersey regulations were adopted permitting HMOs to
offer a Point-of-Service product in the small business market without the use
of an indemnity partner. The Company filed a comprehensive small group
Point-of-Service product which it began marketing upon filing of policy forms
approved by the state insurance department. The Company believes that the
addition of this product will enhance its product portfolio and serve as a
catalyst for new growth in membership. This product is designed to encourage
members to utilize the Company's expansive network of physicians while allowing
flexibility for customer needs.
8
<PAGE> 9
In addition to the other programs, the Company has established a Preferred
Provider Organization ("PPO") network. During the first quarter of 1996, the
Company entered into an agreement with a large organization representing over
ninety (90) employers and self-funded organizations. This organization
represents approximately 750,000 lives, to whom the Company hopes to obtain
access to offer its PPO product. Currently, the Company is servicing 48,000 of
these members under various PPO service contracts. The majority of these
contracts were not effective until April 1, 1996. Management intends to market
this program to other employers, employer groups, third party administrators,
insurance carriers, self-funded plans, trust funds, workers compensation
carriers, and other payers.
The Company is also developing quality healthcare programs to be implemented
during 1996 designed to deliver personalized, quality care and to re-establish
the physician/patient relationship.
OPERATIONS
The Company did not begin generating premium revenue until the fourth quarter
of 1995 after receiving its Certificate of Authority on August 28, 1995.
Premiums and investment income were the major sources of revenue during the
first quarter of 1996. Premiums totaled $93,156, from a total enrollment of
323 members. HMO plans sold in the small employer market constitute the
majority of the membership at March 31, 1996.
Investment income for the three months ended March 31, 1996 decreased $70,754,
to $127,277, as compared to the same period for the previous year. This is
primarily attributable to the decrease in average invested assets.
During the first quarter of 1996, the Company paid minimal medical claims. Due
to the lack of historical claims experience data, the Company has maintained a
claims reserve equivalent to a targeted loss ratio based on industry
statistics. Based upon the review of claims to date this reserve appears
appropriate.
Professional services, compensation and benefits, general and administrative
and insurance expenses ("Operating expenses"), increased $1,703,999 as compared
to the period ended March 31, 1995. In 1995, expenditures and personnel
acquisitions were delayed commensurate with the receipt of licensure.
Additionally in the first quarter of 1995, the Company was developing its core
product and had only eight (8) employees providing services to the Company.
The number of employees has grown to forty-five (45) as of the end of the first
quarter of 1996. For the three months ended March 31, 1996, operating expenses
were in line with budgeted amounts. The Company has emphasized controlling
administrative costs and adherence to budgeted expenditures.
No tax benefit for losses has been recognized in the financial statements
because the realization of such benefits would be dependent upon achieving
future operating profits, which cannot be reasonable assured.
FINANCIAL CONDITION
At of March 31, 1996, total assets were $11,782,784, representing a decrease of
$581,399 from $ 12,364,183 at December 31, 1995. This is due to a decrease in
cash equivalents, which have been used to fund the Company's operations during
the first quarter. The change is accounted for by total expenditures of $2.4
million offset by an increase in capital from the second offering of $1.3
million and an increase in accounts payable and accrued expenses of
approximately $521,000.
Accounts payable and accrued expenses increased $512,423, from $831,855 at
December 31, 1995. The increase is largely due to an increase in estimates of
expenses incurred for which the Company has not been billed, mainly related to
its first quarter advertising campaign, rent expense recognized for GAAP
reporting purposes but not paid and recruiting bonuses. The Company is current
in payments to its vendors for services performed on the Company's behalf.
9
<PAGE> 10
LIQUIDITY AND CAPITAL RESOURCES
The Company's initial offering was for the purpose of raising the capital
necessary to fund its operations until the Company received its Certificate of
Authority and to fund operating deficits until such time as the Company begins
to operate at a profit. The Company's current offering is intended to expand
the network of physicians, the Company's programs and infrastructure and to
enhance the Company's equity position. If operational deficits are greater
than estimated, which is possible, the Company intends to use the net proceeds
from the second offering to fund such deficits.
If the Company fails to achieve positive cash flow or if the proceeds from the
initial and second offering are inadequate to fund the Company's operations,
then additional financing may be required which may not be available on terms
acceptable to the Company.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not involved in any legal proceedings.
ITEMS 2 THROUGH 5 ARE NOT APPLICABLE.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) EXHIBITS
Reference is made to the Index of Exhibits hereinafter contained on
Page 8.
(b) REPORTS ON FORM 8-K.
No reports on Form 8-K were filed during the quarter for which this
report on Form 10-QSB is being filed.
10
<PAGE> 11
INDEX TO EXHIBITS
<TABLE>
<CAPTION>
EXHIBIT NO. EXHIBIT
- - - ----------------------------------------------------------------------------------
<S> <C>
3.1 Articles of Incorporation (incorporated by reference to Exhibit
3.1 to the Registrant's Registration Statement on Form SB-2)
3.2 By-Laws (incorporated by reference to Exhibit 3.2 to the
Registrant's Registration Statement on Form SB-2)
4.1 Secondary Offering Prospectus, as approved by the Securities
Exchange Commission on November 9, 1995, detailing rights
of security holders (incorporated by reference to the
Registrant's Registration Statement on Form SB-2)
10.1 Physician Participation Agreement with Registrant, and
amendment thereto (incorporated by reference to the
Registrant's Annual Report on Form 10-KSB for the year ended
December 31, 1995)
10.2 Hospital Letter of Agreement with Registrant (incorporated
by reference to Exhibit 10.2 to the Registrant's Registration
Statement on Form SB-2)
10.3 Hospital Participation Agreement with Registrant (incorporated
by reference to Exhibit 10.3 to the Registrant's Registration
Statement on Form SB-2)
10.4 Revised Management Agreement by and between Medical
Group Management, Inc. and the Registrant (incorporated
by reference to Exhibit 10.8 to the Registrant's Registration
Statement on Form SB-2)
10.5 Capital Management Agreement between New England Asset
Management and Registrant (incorporated by reference to
Exhibit 10.9 to the Registrant's Registration Statement on Form
SB-2)
10.6 Letter of Intent between Acordia of Southern California and
Medical Group Management, Inc. (incorporated by
reference to Exhibit 10.10 to the Registrant's Registration
Statement on Form SB-2)
10.7 Lease for Registrant's facility (incorporated by reference to
Exhibit 10.11 to the Registrant's Registration Statement on
Form SB-2)
27 Financial Data Schedule
</TABLE>
11
<PAGE> 12
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereunto
duly authorized.
PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
BY: HENRY D. ROSIN, M.D.
----------------------------
Henry D. Rosin, M.D.
President
ERNEST MONFILETTO MIKE W. SMITH
------------------------------ -----------------------------
Ernest Monfiletto Mike W. Smith
President and CEO Chief Financial Officer
Medical Group Management, Inc. Medical Group Management, Inc.
DATED: May 15, 1996
In accordance with the Exchange Act, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
- - - --------- --------- ----
<S> <C> <C>
HENRY D. ROSIN, M.D. Chairman of the Board and May 15, 1996
- - - --------------------------- President
Henry D. Rosin, M.D.
JOSEPH BILLOTTI, M.D. Vice Chairman and Director May 15, 1996
- - - ---------------------------
Joseph Billotti, M.D.
RAJENDRA PRASAD GUPTA, M.D. Secretary and Director May 15, 1996
- - - ---------------------------
Rajendra Prasad Gupta, M.D.
RAYMOND KENNY, M.D. Treasurer and Director May 15, 1996
- - - ---------------------------
Raymond Kenny, M.D.
STANLEY BLOOM, M.D. Director May 15, 1996
- - - ---------------------------
Stanley Bloom, M.D.
WILLIAM F. BRENNAN, D.O. Director May 15, 1996
- - - ---------------------------
William F. Brennan, D.O.
LEE HINDIN, M.D. Director May 15, 1996
- - - ---------------------------
Lee Hindin, M.D.
ALEXANDER R. HOROWITZ, M.D. Director May 15, 1996
- - - ---------------------------
Alexander R. Horowitz, M.D.
LOUIS KEELER, M.D. Director May 15, 1996
- - - ---------------------------
Louis Keeler, M.D.
LINDA KORMAN, M.D. Director May 15, 1996
- - - ---------------------------
Linda Korman, M.D.
</TABLE>
12
<PAGE> 13
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
- - - --------- --------- ----
<S> <C> <C>
STEPHEN P. LANDAUER, M.D. Director May 15, 1996
- - - -----------------------------
Stephen P. Landauer, M.D.
MARK LEVEY, M.D. Director May 15, 1996
- - - -----------------------------
Mark Levey, M.D.
MARTIN S. LEVINE, D.O. Director May 15, 1996
- - - -----------------------------
Martin S. Levine, D.O.
NANCY L. MUELLER, M.D. Director May 15, 1996
- - - -----------------------------
Nancy L. Mueller, M.D.
MARK T. OLESNICKY, M.D. Director May 15, 1996
- - - -----------------------------
Mark T. Olesnicky, M.D.
EMMONS G. PAINE, M.D. Director May 15, 1996
- - - -----------------------------
Emmons G. Paine, M.D.
FRED M. PALACE, M.D. Director May 15, 1996
- - - -----------------------------
Fred M. Palace, M.D.
BARRY PRYSTOWSKY, M.D. Director May 15, 1996
- - - -----------------------------
Barry Prystowsky, M.D.
THOMAS R.C. REUTTER, JR. D.O. Director May 15, 1996
- - - -----------------------------
Thomas R.C. Reutter, Jr., D.O.
IAN SAMSON, M.D. Director May 15, 1996
- - - -----------------------------
Ian Samson, M.D.
DAVID L. SIROTA, D.O. Director May 15, 1996
- - - -----------------------------
David L. Sirota, D.O.
BESSIE SULLIVAN, M.D. Director May 15, 1996
- - - -----------------------------
Bessie Sullivan, M.D.
VINCENT J. VIVONA, D.O., J.D. Director May 15, 1996
- - - -----------------------------
Vincent J. Vivona, D.O., J.D.
</TABLE>
13
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BALANCE
SHEET AT MARCH 31, 1996 (UNAUDITED) AND THE STATEMENT OF OPERATIONS FOR THE
THREE MONTHS ENDED MARCH 31, 1996 (UNAUDITED) AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000948547
<NAME> PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 4,491,051
<SECURITIES> 3,954,334
<RECEIVABLES> 12,289
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 8,821,234
<PP&E> 2,005,379
<DEPRECIATION> 255,361
<TOTAL-ASSETS> 11,782,784
<CURRENT-LIABILITIES> 1,431,169
<BONDS> 0
0
0
<COMMON> 17,575,000
<OTHER-SE> (7,223,385)
<TOTAL-LIABILITY-AND-EQUITY> 11,782,784
<SALES> 93,156
<TOTAL-REVENUES> 220,829
<CGS> 0
<TOTAL-COSTS> 79,563
<OTHER-EXPENSES> 2,619,282
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (2,478,016)
<INCOME-TAX> 0
<INCOME-CONTINUING> (2,478,016)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (2,478,016)
<EPS-PRIMARY> (705)
<EPS-DILUTED> (681)
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM BALANCE
SHEET AT DECEMBER 31, 1995 AND THE STATEMENT OF OPERATIONS FOR THE YEAR ENDED
DECEMBER 31, 1995 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<CIK> 0000948547
<NAME> PHYSICIAN HEALTHCARE PLAN OF NEW JERSEY, INC.
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<CASH> 5,308,465
<SECURITIES> 3,980,627
<RECEIVABLES> 588
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 9,541,442
<PP&E> 1,890,819
<DEPRECIATION> 133,801
<TOTAL-ASSETS> 12,364,183
<CURRENT-LIABILITIES> 849,150
<BONDS> 0
0
0
<COMMON> 17,575,000
<OTHER-SE> (6,059,967)
<TOTAL-LIABILITY-AND-EQUITY> 12,364,183
<SALES> 2,223
<TOTAL-REVENUES> 711,986
<CGS> 0
<TOTAL-COSTS> 2,075
<OTHER-EXPENSES> 5,376,023
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (4,666,112)
<INCOME-TAX> 0
<INCOME-CONTINUING> (4,666,112)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (4,666,112)
<EPS-PRIMARY> (1,318)
<EPS-DILUTED> (1,318)
</TABLE>
