MD Physicians Plans Statewide Management Services Organization

By Carter, Kim | THE JOURNAL RECORD, June 27, 1986 | Go to article overview

MD Physicians Plans Statewide Management Services Organization


Carter, Kim, THE JOURNAL RECORD


With formation of MD Physicians of Tulsa Inc. completed as the fourth affiliate of MD Physicians Inc. of Oklahoma Ci ty, a new statewide management services organization will be formed, it was announced Thursday.

It will be called Physicians Management Services Corp., said Mike Schuster, executive director of MD Physicians Inc. Schuster will be president and chief executive officer of Pysicians Management, which will serve the state network of more than 1,200 physicians.

The new management firm will enter into contracts for management and support services will all of the state organizations, said Schuster.

In addition, MD Physicians Inc. has contracted with physicians in Arizona to develop an affiliate in that state, said Schuster, and is working with steering groups of physicians in Alabama, Arkansas and Texas.

MD Physicians of Tulsa, which includes 400 doctors, joins MD Physicians of Lawton, MD Physicians of Southern Oklahoma, MD Phsucians of Muskogee and the original MD Physicians Inc. of Oklahoma City in the state network.

MD Physicians Inc. was formed by 32 doctors in Midwest City during May 1984 to support the private practices of member physicians. Its subsidiary, Physicians Medical Plan of Oklahoma Inc., is an independent practice association that amounts to a health insurance firm owned by doctors.

Physicians Medical Plan, which was started last July, contracts with health management organizations, insurance companies and self-funded employers to provide physician and hospital services under "cost-managed" contracts.

Nearly 1,100 physicians have joined the MD Physicians Inc. network over the past year, said Schuster, resulting in the need for the new statewide Physicians Management Services Corp.

Physicians Management will be an investor-owned corporation, based in Oklahoma City, and it will employ all of the staff of MD Physicians Inc. when it becomes operational during July, he said.

The management firm will be organized by the stock subscription of $350,000, subscribed by private placement and limited to 35 investors, Schuster said.

Also, The new firm has been licensed by MD Phsysicians Inc. of Oklahoma City to organize and develop other independent practice associations around the country.

The corporations are able to compete more effectively in the medical marketplace through group buying programs, similar to a coop, said Schuster.

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