MedPartners’ Loss Linked to Unit’s Closure

MedPartners Inc. reported a second-quarter loss after a $199.3-million charge for its discontinued medical-practice management business, as it transforms itself into a drug benefits administrator. The company said it had a loss of $187.6 million, or 96 cents a share, compared with a loss of $23.3 million, or 12 cents, a year ago. Revenue rose 25%, to $796.2 million from $639.5 million. Once the largest company in the physician management industry, MedPartners is leaving the business because it found it hard to increase earnings without making expensive acquisitions. The company’s drug benefits management business is strong. In March, California regulators seized control of MedPartners’ physician management business and sought bankruptcy protection for the unit, saying the firm didn’t have enough cash to pay new claims. Alabama-based MedPartners says it now has lined up buyers for all its California assets. Shares fell 31 cents to close at $7.63 on the New York Stock Exchange.