Peabody-Medical

Peabody Medical Group

Business Description

Peabody Medical Group was the largest independent primary care physician group located in Memphis, TN.

Background

Due to the spread of managed care in the Southeastern U.S. and the premium placed on primary care physician practices as feeders into hospital systems, Peabody sought a strategic partner that would provide liquidity to its physician owners and obtain access to professional management.

Solution

Peabody was acquired by American Medical Holdings, Inc. (NYSE:AM) (AMI), which was one of the top ten largest for-profit hospital chains in the U.S. now owned by Tenet Healthcare Corporation (NYSE:THC).  AMI's strategy was to build a regional physician management company in the Midwest and Southeast centered in key markets where had it had a significant hospital share. Peabody entered into a long-term affiliation agreement with AMI under which AMI would manage the business operations of Peabody. AMI also acquired the assets of the practice. A principal of Carter Morse & Mathias served as Peabody's exclusive advisor for the transaction.