Disclaimer:- The material is
selective and not all inclusive. The extracts do not necessarily
reflect the perspective of the original. No claim is made that all of
the matters referred to are true. The intention is to give the
flavour of the material and an idea of the culture of the
marketplace.
This page gives sources for information about Alpha. These titles and EXTRACTS only. It provides a series of "word bites" from these to suggest the content of each and to illustrate the culture of the marketplace. This is the thinking which increasingly determines the provision of health services in Australia- the treatment individuals are given. Ask yourself whether this is he sort of environment in which we should be caring for the frailty of humanity and for those whose health care luck has run out.
Ask yourself whether the phrases looking a little seedy, having a poor prognosis and looking better used in these reports have anything to do with these citizens and whether the welfare of these unfortunates whom the system is supposed to be helping are a significant concern to the people who are selling them "health care products". Does it reflect the Samaritan ethic and tradition of our civilisation.
Does microeconomic reform improve the health
care of citizens or threaten it? Are the Malaysian and US investors
putting their capital into Alpha Healthcare doing so to serve
Australian's suffering sick or to make as much money as they can out
of them?
Go to
CHANGE OF NAME:
The Australian Financial Review 06 Sep 1992
Alpha Pacific Ltd has advised that it proposes to change the name of the company to Alpha Healthcare Ltd.
COMMENT:- The next article is derived from a telegraphic report dated 31 March 1993, prepared at the American Consulate - Sydney. It discusses planned development projects in New South Wales, Australia. Health care is one of the sectors and the memo reports on projects at the John Hunter Hospital, Nepean Hospital, Royal Prince Alfred Hospital, St George Private Hospital, Bowral private Hospital, and Port Macquarie. (Font and case altered for legibility)
AMCONSUL SYDNEY
IMI: NEW SOUTH WALES MAJOR PROJECT UPDATE
Market Reports April 14, 1993
Copyright 1993 National Trade Data Bank
AUSTRALIA - NSW DEVELOPMENT PROJ
US&FCS Sydney is monitoring major infrastructure projects in New South Wales. Following is a summary of observations and project status developed after a series of meetings with government officials, private sector lawyers, consultants, civil engineers, and financiers. These recent meetings have indicated that in order for U.S. companies to optimize chances of success in major project activity, it is essential to form some sort of partnership with a local company, combined with a long term market strategy. There are many local companies with significant expertise and experience in major project activity. USFCS Sydney is in the process of identifying the local network involved in major projects at the concept, feasibility, design and consortia formation stages so that contact information may be passed on to interested American companies.A The national Perspective.
1. During recent years privatization has moved up the political agenda of Australian federal and state governments. This is taking place through the sale of public assets to the private sector; corporatization of government authorities; commercialization of government departments; contracting out of services previously carried out by government; offering build, own and operate infrastructure assets; and the dilution of former government monopolies by allowing competition.
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- Bowral private hospital: development of a 14 million dollar, 90 bed private hospital on the campus Bowral district hospital in the Southern Highlands - preferred tenderer selected (Alpha Healthcare) and negotiations on draft agreements are currently proceeding.
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- Future health opportunities: the department of health has carried out planning for a range of health services/facilities. The private sector could potentially become involved in the provision of these facilities. These opportunities include: Hawkesbury New Hospital; Liverpool Hospital redevelopment; Prince of Wales/Prince Henry hospital refurbishment.
Comment:- It seems that repaying large debts has long been a problem for Alpha.
WHAT THE BROKERS ARE SAYING
The Sun Herald 04 Sep 1993
ANDREW BROWN, ANZ McCaughan BUY Alpha Healthcare Ltd (8.5c): - - - - - - The company is making sustainable improvements in its profits but remains hamstrung by more than $40 million debt.
ALPHA HEALTHCARE IS BACK ON BOARD
The Australian Financial Review 24 Jul 1994
The shares of private hospital operator Alpha Healthcare Ltd resume trading today, after a technical glitch prompted the Australian Stock Exchange to suspend trading on Friday. Alpha, due to have a $23.5 million new equity raising later this year, completed a capital reconstruction on Wednesday
ALPHA CUTS DEBT AND GETS TAN
The Australian Financial Review 18 Sep 1994
HOSPITAL operator Alpha Healthcare Ltd is cutting its debt and positioning itself to take advantage of increasing opportunities in the private health care market with its $23.5 million public offer that opens today. The offer of 78.5 million shares at an issue price of 30c - - - -
The pacesetter in patient care
Sydney Morning Herald 29 Mar 1995
A HYDROTHERAPY pool, a complex of four operating theatres, and a dedicated staff of healthcare professionals enable the Hunters Hill Private Hospital to maintain high standards.
Alpha Healthcare looking a little
seedy
The Age
Australasian Business Intelligence June 29, 1995
article comments on Alpha Healthcare's share price fall; graph
Healthcare: It's a gamble.
Bulletin with Newsweek, 08/08/95, Vol. 116 Issue 5982, p58, 3p, 1
chart, 3c
Jacques, Bruce
Discusses health care in Australia. Importance of microeconomic factors in the health business; List of Australia's largest private hospital groups and their market share; Financial debacle facing Alpha Healthcare and Australian Medical Enterprises.
------------------------------
-Investors have learned the hard way that microeconomic factors are the crucial variable in many businesses, but especially health-
The Australian advantage -- in The
Bulletin
Australasian Business Intelligence August 29, 1995
Copyright 1995 Business Intelligence Australia Pty Ltd
ABSTRACT: the Australian Stock Exchange has become a magnet for leading conglomerates from Malayasia and Singapore seeking to diversify internationally, reports Russell Baker; companies discussed include Ipoh, Alpha Healthcare, - - - - -
Alpha Healthcare
Australasian Business Intelligence September 12, 1995
SOURCE: Sydney Morning
ABSTRACT: Alpha Healthcare enjoys a 1,265% surge in profit to $A11.3m - - -
Untitled Story
THE SUNDAY TELEGRAPH SUN 04 FEB 1996
This company owns and manages a number of private hospitals and specialist medical and rehabilitation centres, mainly in NSW. The company has recently won a new contract to manage the Hunter Valley private hospital and will manage the new Southern H...
Malaysians buy into Alpha group
Australasian Business Intelligence April 13, 1996
Source: The Age - - - - Christopher Webb
ABSTRACT: the article discusses how Malaysian investors are increasingly becoming interested in Australia's health care industry; Berjaya Group has bought 6,001,500 shares in the Alpha Healthcare group from JP Morgan for 17 cents a share; this is the most recent evidence of Malaysia's interest;
RON`S GPG AT IT AGAIN THIS TIME EYEING
ALPHA.
The Age 01 Aug 1996
SIR Ronald Brierley and his lieutenant Gary Weiss - through the London-registered Guinness Peat Group - have bobbed up on the share register of yet another situation stock in the form of Alpha Healthcare. Guinness has positioned itself as a substanti
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Guiness Peat Group (GPG) has moved to become a substantial shareholder in Alpha Healthcare, with a stake of 5.4%; - - - the stake appears at a time when many shareholders of Alpha are dissatisfied about the severe diminution of Alpha's share price since early 1994; institutional shareholders have not done as badly as a result of the share price's decline, - - -
Alpha continues on acquisition trail
Australasian Business Intelligence August 5, 1996
Business Sydney --- Anita Ward
ABSTRACT: Alpha Healthcare Ltd has gained the Liverpool 24 Hour Medical Centre; this continues Alpha's recent set of acquisitions in New South Wales;
Alpha Asia sale
THE AUSTRALIAN WED 28 AUG 1996
MALAYSIA'S Berjaya Group Bhd will lift its stake in the listed Alpha Healthcare Ltd from 13.1 per cent to almost 20 per cent. Alpha will place 9.55 million shares with Berjaya at 20c to raise $1.9 million, - - - -
Alpha expands rehab centres
Australasian Business Intelligence September 2, 1996
Business Sydney -- - - Anita Ward
ABSTRACT: the article reports that Alpha Healthcare has announced it will open three new occupational rehabilitation centres by the end of 1996; the centres will be operated by Workright, a company which represents the core of Alpha Healthcare's general insurance division; - - - - -
Alpha keeps on growth trail with Malaysian
cash infusion
Australasian Business Intelligence September 16, 1996
Business Sydney - - - -Anita Ward
ABSTRACT: the article reports that Berjaya Group Berhad will increase its shareholding in Alpha Healthcare from 13.1% to almost 20%; the stake will be increased through the placement of 9.55 million shares at A20 cents per share;- - - - - the investment will allow the company to capitalise on opportunities in the Sydney market and commence diverisification and expansion programs
Annual Report 1996
Berjaya Group Berhad - - - - is one of the largest corporations in Malaysia with extensive hospital interests in that country; in addition to a 23% interest in Asia's largest hospital group, the Singapore based Parkway Holdings and a 50% interest in Gribbles Pathology, one of Australia's largest pathology groups/ALPHA FAMILY HEALTHCARE
Ultimately Alpha aims to have a division of approximately 15 medical centres giving Alpha access to 5% of the general practice market in Sydney. Primary healthcare has obvious flow on effects to other medical services, namely pathology, radiology, specialist services and ultimately hospitalisation and is a starting point of all medical treatment in Australia. By vertically integrating primary healthcare right through to hospital services, Alpha will be able to offer patients a full range of services in a completely seamless system.
Alpha zaps into NSW radiology
Australasian Business Intelligence November 27, 1996
The Advertiser - - - Simon Evans
ABSTRACT: the article reports that Alpha Healthcare has acquired a 60% stake in New South Wales-based radiology group Belgrave Diagnostics; Belgrave will become a new operating division of the private hospital group, which is seeking to expand its operations in he bulk-billed diagnostic market; Alpha is controlled by Malaysian companies Tan & Tan and the Berjaya Group; Alpha md Paul Hopper says Belgrave will change its name to the Alpha Imaging Group
Diagnostic push
THE AUSTRALIAN WED 27 NOV 1996
LISTED private hospital operator Alpha Healthcare Ltd has taken a 60 per cent equity stake in radiology group Belgrave Diagnostics to be the cornerstone of a new operating division.
Alpha Healthcare continues moves to
broaden health services operations
Australasian Business Intelligence December 2, 1996
Business Sydney - - - Anita Ward
ABSTRACT: the article reports that Alpha Healthcare has purchased a controlling interest in Belgrave Diagnostics; Belgrave Diagnostics will now change its name to Alpha Imaging Group; - - - designed to assist the company take advantage of the opportunities created by the growth of the bulk billed diagnostic market in New South Wales, which has an annual growth rate of 4%
Boutique hotel feel for
patients
Sydney Morning Herald 16 Apr 1997
A recent $2 million refurbishment has left the Hunters Hill Private Hospital with the most modern equipment and a homely feel, writes SYLVIA LORIMER . WHEN the Prime Minister recently visited the Hunters Hill Private Hospital to see its $2 million refurbishment, he was particularly interested - - -
JAMES HARDIE TO POST S8.10 MLN LOSS FROM
HOSPITAL SALE
ASIA PULSE May 21, 1997
Copyright 1997 Asia Pulse Pte Limited
Building materials company James Hardie Industries Ltd said it would book a 10.5 million (S8.10 million) after tax loss from the sale of its 80 per cent stake in private hospital operator Health Care Corporation (HCC).James Hardie said it has agreed to sell HCC to listed Alpha Healthcare Ltd for around 38 million (S29.33 million) with the sale expected to be completed by June 30.
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The spokesman said James Hardie has been in negotiations to sell its Health Care stake, acquired in 1986, for about three years but offers were not satisfactory.
JAMES HARDIE - SELLS S29.3MLN INTEREST IN
HEALTH CARE
ASIA PULSE May 21, 1997
James Hardie announced today it had signed an agreement to sell its 80% interest in Health Care Corporation (HCC) to Alpha Healthcare Limited, for a total consideration of about 38 million (S29.33 million).
James Hardie loses $10m on HCC sale
Sydney Morning Herald 21 May 1997
Carolyn Cummins Anthony Hughes
Alpha Healthcare has expanded its presence in the industry by paying $38 million for the NSW private hospital operator Health Care Corporation (HCC) from the joint owners James Hardie Industries and Leighton Holdings. James Hardie will book a loss of $10.5 million on its 80 per cent stake.ABSTRACT: (Australasian Business Intelligence)
- - - - Alpha Healthcare will fund the acquisition through debt and equity, part of which will come from a share issue of 103.8m shares; $A15m in equity will be provided to Alpha by Sun Healthcare, which is a US-based group
Alpha to pay $38m for Health Care
Australian Financial Review 21 May 1997
US healthcare operator Sun Healthcare Group is set to gain control of the listed Alpha Healthcare Ltd following Alpha's acquisition of private hospital operator Health Care Corp Pty Ltd. Alpha announced yesterday it would pay $38 million for Health Care Corp, - - - -ABSTRACT: (Australasian Business Intelligence)
- - - - - - the deal will make Alpha the second-biggest private hospital operator in New South Wales; Alpha will fund the purchase via a mix of debt and equity; United States-based Sun Healthcare will pay $A15m for a 38% stake in Alpha, while James Hardie will also have a major stake;
Alpha Healthcare to raise $22.7 million to
acquire Health Care Corporation Pty Ltd
Release to the ASX 21 May 1997
Hardie takes its medicine
THE DAILY TELEGRAPH THU 22 MAY 1997 ---- Emma Blake
JAMES Hardie Industries will book a $10.5 million loss on the sale of its 80 per cent stake in Health Care Corp,ABSTRACT: (Australasian Business Intelligence)
- - - - - Leighton Holdings, a construction company, sold the remaining 20% stake in HCC; HCC total sale price amounted to $A47.5m; consequently, Alpha will now be the second biggest private hospital operator in NSW
James Hardie bales out of HCC - - -
David Moodie
Australasian Business Intelligence May 22, 1997
SOURCE: The Advertiser
ABSTRACT: The article reports that Australian corporation, James Hardie Industries, has found a buyer for its underperforming division, Health Care Corp, - - - - the sale is part of James Hardie's strategy of divesting and restructuring that has so far generated savings of $A520m since 1996; - - - - - the company had been wanting to sell HCC since 1993; the restructuring also includes an expansion of the United States fibre cement and gypsum operations, for $A260m; Baxter predicts growth in America and the Philippines will lead to an improved profit despite slow business in Australia
Hardie to book $A10.5m loss on HCC
sale
Australasian Business Intelligence May 22, 1997
SOURCE: The Courier-Mail
ABSTRACT: - - - - HCC, which has annual revenue of $A35m, had been on the market for three years; it was originally acquired by James Hardie in 1986
Alpha deal will double revenue
THE AUSTRALIAN THU 22 MAY 1997 Andrew White
ABSTRACT: (Australasian Business Intelligence)
- - - the article explains the deal will double Alpha Healthcare's capitalisation and revenue but will return losses for the sellers of Health Care Corp, Leighton Holdings; the article reports the deal also includes a 38% stake hand over in Alpha Healthcare to the United States company Sun Healthcare Group; - - - - the deal is subject to approval by the Australian Foreign Investment Review Board and due diligence by Sun Healthcare Group
Go for the doctor!
Shares June, 1997- - - James Dunn Janelle Carrigan
Alpha is trying to diversify away from a dependence on in patient hospital services, establishing family healthcare - - - radiology divisions ---- buying primary care and general practice centres - - - - bought a pathology business -- and an occupational rehabilitation division.
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Alpha's major shareholder is the Malaysian group Berjaya Group Berhad. This group was the losing bidder for Australian Medical Enterprises in 1995; analysts say its keeness on the industry is not in doubt.
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Since breaking out of a string of losses in 1993-4, Alpha has been profitable.ABSTRACT: (Australasian Business Intelligence)
Medical investments can be excellent for the astute investor; the report is the first of two; part one regards listed health stocks; - - - - - - - medical and health care account for 8% of Australian GDP, reflecting $A40bn; with an aging population, the medical sector is set to grow; influences on the sector include Medicare; the decline in private health insurance directly influences the fortunes of the sector
Sun Healthcare Group to Acquire Interest
in Australian Company
[ PR Newswire] 1997 June 4
Company Press Release
Sun Healthcare Group, Inc. (NYSE:SHG) has announced an intention to acquire a minority interest in Alpha Healthcare Ltd., a publicly traded company that operates private hospitals in Australia. The transaction represents an investment of approximately U.S. $12 million.
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The funds to be invested in Alpha will be used by that company to finance its acquisition of Health Care Corporation Pty. Ltd., a private hospital operator in Australia. That acquisition will position Alpha as the second- largest operator of private hospitals in New South Wales, with 800 beds under its control.``In Australia, the private hospital sector includes what the U.S. nursing home business refers to as subacute care. Therefore, this investment represents an opportunity for Sun to leverage its clinical expertise in an emerging healthcare marketplace,'' said Andrew L. Turner, Sun's chairman and chief executive officer. Sun is currently one of the largest U.S. providers of subacute care in the long-term care industry.
Mr. Turner, who will be appointed to the Alpha board of directors once the transaction is finalized, noted, ``This investment will enable us to learn more about the Australian marketplace, and to continue to expand our ancillary businesses in the international healthcare arena.''
US healthcare giant buys a stake here at
`bargain price'
Australian Financial Review 05 Jun 1997 - - - Sue
Mitchel
US healthcare giant Sun Healthcare Group has established a beachhead in the Australian health industry at a bargain price, according to an experts report on Sun's investment in private hospital operator Alpha Healthcare Ltd. Independent expert PKF Corporate Advisers said Sun's acquisition of a 38 per cent stake unfair because it did not include a premium for the "significant" influence Sun would have over Alpha.
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- - - - attempts (by Alpha) to secure more favourable terms with other potential investors have been unsuccessful.ABSTRACT: (Australasian Business Intelligence)
- - - - the independent expert PKF Corporate Advisers say that the price unfairly does not include a premium for the influence Sun will have over Alpha; PKF did note, though, that without Sun Alpha would not have been able to acquire the private hospital interests of Health Care Corp Ltd; Alpha managing director Paul Hopper believes that the acquisition by Alpha will benefit the company immensely by more than doubling market capitalisation and earnings
Sun Healthcare stake in Alpha.
Wall Street Journal - Eastern Edition, 06/05/97
Abstract: (Business Source Premier ) Reports on plans by Sun Healthcare Group Incorporated to acquire a minority interest in Alpha Healthcare Limited. Factors which prompted Sun Healthcare's decision; Stipulations of the proposed investment.
With a $20m injection, Alpha aims to be a
health-care major
The Australian Financial Review June 6, 1997 - - - Sue
Mitchell
Alpha Healthcare has engineered a dramatic rise in its fortunes, much to the surprise of its competitors, and now the private hospital operator is reaching for higher goals.If Paul Hopper had said 12 months ago he wanted to be one of the largest private hospital operators he would have been laughed out of town.
His company, Alpha Health Care Ltd, ranked well down the list of private-hospital and health-care concerns in Australia and was seen to be undercapitalised, with few prospects for growth.
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Mr Hopper said the HCC deal would not have been possible without the involvement of Sun Healthcare, which may also be called upon to help finance further expansion.ABSTRACT: (Australasian Business Intelligence)
The article discusses the rising fortunes of Australian private hospital operator Alpha Health Care; - - - - - Alpha boss Paul Hopper discusses his company's ambitions, which will be aided by a $A20m capital injection from two new shareholders; the article examines factors such as Alpha's earnings per share, its price earnings multiples, its major shareholders, and the number of hospitals beds it will operate after the HCC deal; the latter is contrasted with the operations of its major rivals
Private health players on rise - - - -
Marion Downey
Sydney Morning Herald 23 Jun 1997
Private health care in NSW is heading for a major shake-up with the entry of Victoria's largest private hospital concern expected later this week. The entry of new bigger players into the NSW market will push forward plans for two major private hospitals in Sydney's west, - - -ABSTRACT: (Australasian Business Intelligence)
The biggest private hospital owner in Victoria, Australian Hospital Care, is preparing to enter the New South Wales private health care market. The entry is expected to see a fast-tracking of the proposals for two major private hospitals in the west of Sydney. It is also expected to see an increase in integrated health care management in the state, which is where one operator owns a variety of health care organisations - such as hospitals and diagnostic services. One of the new private hospitals in Sydney is being built by Alpha Healthcare.
Results of Meeting re Acquisition
Press Release 23/6/1997
The company's shareholders voted overwhelmingly in favour of resolutions necessary to acquire NSW Private Hospital operator Health care Corporation Pty, Ltd - - -
ALPHA HEALTHCARE - HEALTH CARE CORP
ACQUISITION
ASIA PULSE June 23, 1997
Copyright 1997 Asia Pulse Pte Limited
SYDNEY: 23 June 1997 - Shareholders in Alpha Healthcare ("Alpha") today voted overwhelmingly in favour of resolutions necessary to acquire NSW private hospital operator Health Care Corporation Pty Limited ("HCC") from James Hardie Industries and Leighton Holdings for 37.74 million (S28.23 million).
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The Managing Director of Alpha Healthcare, Mr Paul Hopper, said - - - "Importantly, we now have the critical mass to build a significant presence as an integrated healthcare provider in the nation's most populous state which we expect will deliver substantial benefits to shareholders over the longer term.
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"With an enhanced capital base, we believe Alpha is now strongly positioned to benefit from opportunity for growth brought about by the structural changes in the Australian market, in particular, hospital privatisations and co-location projects, in addition to our strong connections in Asia."
Healthy deal for Alpha
Australasian Business Intelligence June 24, 1997
The Canberra Times
ABSTRACT: Shareholders of the Alpha Healthcare group have given their approval for the proposal that the Australian medical services company purchase Health Care Corp for $A37.74m;
Alpha set to buy Health Care Corp - - - -
Anita Ward
Australasian Business Intelligence June 30, 1997
SOURCE: Business Sydney
ABSTRACT: News that Health Care Corporation will be acquired by New South Wales' Alpha Healthcare in June 1997, was met with enthusiasm and support by shareholders of the private hospital operator. The acquisition was worth $A37.74million, with American Sun Healthcare Group becoming the largest shareholder in Alpha by investing $A15million. Alpha is set to be a strong presence in NSW's hospital sector
Completion of Consolidation of
Shares:-
Release 14 July 1997
- - consolidation of f.p. ord. shares on a one for five basis - - - 20c sheres were consolidated to - - - $1.00 shares
Victoria seeks cure in private
Australian Financial Review 24 Jul 1997
The Victorian Minister for Health, Mr Rob Knowles, headed north of the border yesterday to enlist the help of Sydney's private health care community to assist in Victoria's efforts to revamp its public hospital system.
Extension by vendors of completion date of
sale to 15/8/97
Release 31 July 1997
- - this will enable the Foreign Investment Review Board to complete its examination of Sun healthcarre - - -
Alpha deal on ice after approval snag- - -
Mark Jeanes
The Financial Review 31 July 1997
- - - purchase of Health Care
Corporation Pty Ltd has been delayed after the Foreign Investment
Review Board raised concerns over the involvement of American health
care giant Sun Healthcare Group Inc.
-----------------
- (FIRB)- - has baulked at reports that the Civil Division of the US
Department of Justice was investigating the billing practices of
Sun's subsidiaries.
------------------
Executives from Sun have visited Canberra to from the US in recent
days in order to smooth things over with the review board.
------------------
The FIRB had previously been alerted of investigations being made by
the Criminal Division of the Department of Justice.
ABSTRACT: (Australasian Business
Intelligence)
- - - - However, Australia's Foreign Investment Review Board has
expressed concern over the involvement of United States-based Sun
Health Group Inc. - - - - The FIRB is said to be concerned about
reports that the billing practices of Sun's subsidiaries are being
examined by US legal authorities.
Completes Healthcare Corporate
Acquisition
Release 18 August 1997
- - - Settlement follows Foreign Investment Review Board approval of a $15 million investment in Alpha by Sun Healthcare
Sun gets nod for 38pc stake in Alpha
Australian Financial Review 18 Aug 1997
The Foreign Investment Review Board has approved US health giant Sun Healthcare taking a 38 per cent stake in Alpha Healthcare Ltd, allowing Alpha to finance its $39 million takeover of private hospital operator Health Care Corporation Ltd. The deal was delayed late last month when the FIRB baulked after discovering that the Civil Division of the US Justice Department was investigating the billing practices of one of Sun's subsidiaries.But the deal was given approval on Friday after Sun returned with more information about the investigations at the FIRB's request.
"It was very straightforward. Sun provided everything that was asked and more" the managing director of Alpha, Mr Paul Hopper said last night.
ALPHA HEALTHCARE LTD -COMPLETES HEALTHCARE
CORP ACQUISITION
ASIA PULSE August 19, 1997
Alpha to forge ahead with Westmead Co-location Project SYDNEY: 18th August, 1997
-----------------------
Settlement follows Foreign Investment Review Board ('FIRB') approval of a 15 million (S11.04 million) investment in Alpha by Sun Healthcare Inc ('Sun') as part of the funding of the 38.74 million (S28.51 million) acquisition of HCC.
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The Managing Director of Alpha Healthcare, Mr Paul Hopper said that with the acquisition settled, the company would now forge ahead with its plans for building a 44 million (S32.38 million) tertiary care 140-bed hospital to be strategically co-located by the Westmead Public Hospital campus, in Sydney.
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. Sun Healthcare Group, Inc Headquartered in Albuquerque, New Mexico, Sun Healthcare is the third largest provider of contract rehabilitation, the sixth largest nursing home operator, and one of the largest subacute care providers, in the USA. The Company is listed on the New York Stock Exchange and has a market capitalisation of approximately 1.0 billion (S740 million) with total sales of 1.6 billion (S1.18 billion) for the year ended 31 December 1996.
Sydney firm buys hospital
Illawarra Mercury 21 Aug 1997
Illawarra Private Hospital has been sold to a Sydney-based company as part of a $38.74 million buy-up in which three private hospitals to the south-west of Sydney changed hands this week. Alpha Healthcare Limited completed acquisition of NSW private hospital operator Health Care Corporation
Alpha appoints Sun's Turner as
director
Reuter Aug 25 1997
Hospital operator Alpha Healthcare Ltd said on Monday it had appointed Andrew Turner as a director.
Preliminary Final Report - Financial Year
Ended 30/06/97
Release 8 Sept 1997
Sales up 20% - - announced a 35% increase in operating profit before tax and abnormal items - -
---------------
The new financial year will see annual revenues more than double to $90.0 million - - -
Business Review Weekly, Monday, 08 Sep 1997
With public hospitals facing a troubled future, one merchant bank believes the next step will be privatisation. - - - - - the transition will not be easy Bankers Trust Investment Bank is gearing up for a revolution in Australian health care.
Comment:- The following piece comes 6 months after Columbia/HCA was rejected by Australia.
Hospital sale sparks access fears
The Age, Monday, 29 Sep 1997
The State Government's privatisation of a second key country hospital has renewed warnings of an American-style health system that would restrict public access to health care. The Government has announced the Mildura Base Hospital will be replaced.
COMMENT:- In the following piece which reads like an advertorial Alpha which until now has been a bit player, one which has made a remarkable advance assumes the mantle of the establishment in order to promote its expansion into Asia.
Alpha healthcare expands patient benefits
through quality Service
Asian Business Review, Oct97, p60, 1p, 2c
Alpha Healthcare is not only one of Australia's top private healthcare providers, they now plan to provide even higher standards of service to their patients.No longer content with being one of the top two private sector healthcare providers in New South Wales, Sydney-based Alpha Healthcare is now keen for Asian patients to benefit from its fine facilities and expertise.
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The company's 1500 healthcare professionals deliver a broad range of surgical, medical, day-only and psychiatric hospital services and it is also Australia's largest provider of private rehabilitation healthcare.Taking time talk to ABR, Mr Hopper explained there were primarily two factors that could differentiate private hospitals from their competitors. Firstly the care they gave their patients, and secondly the speed with which they could get them back to work With its emphasis on training, Alpha has been able to do both these, plus capitalise upon Australia's renowned nursing expertise - 90% of its staff are nurses.
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Training is such an important factor at Alpha and Mr Hopper stresses to all employees that if the Company is to continue to grow and prosper, they must maintain their focus on quality and high standards.All of Alpha's hospitals have achieved three year Accreditation, an independent quality benchmark, which helps ensure that optimum performance is an everyday occurrence throughout its facilities.
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Alpha's rehabilitation program is aimed at getting patients back to work as quickly as possible.
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Alpha is therefore one of Australia's most professional, respected and successful healthcare companies. And one which is not content to rest on its laurels, but rather seeks to build upon its success by expanding into Asia.Shareholders in Alpha Healthcare will see this expansion program underwrite growth in earnings per share, dividends and ultimately the company's share price.
Appoints Project Finance Advisor for New
Westmead Hospital
Release 2 Oct 1997
- - - appointed bankers Trust to advise on securing project finance for its Westmead Private Hospital, a $40 million project - -
BRIEFS: Alpha to raise $40m
Australian Financial Review 02 Oct 1997
Alpha Healthcare Ltd announced yesterday that it had appointed Bankers Trust as adviser in securing $40 million to finance construction of the company's Westmead Private Hospital in Sydney's west.
Healthy profits. Private hospitals thrive
as funds raise fees - - - - Sue Dunlevy
THE DAILY TELEGRAPH WED 08 OCT 1997
A MASSIVE increase in private hospital profits last financial year has emerged as one of the factors driving up private health insurance premiums. Private hospital groups have reported increases in profits of between 15 and 138 per cent - -ABSTRACT: (Australasian Business Intelligence)
During the 1996-97 financial year Australia's private hospitals boosted their profits by as much as 138%. During the same financial period health funds were forced to raise the value of their premiums. These price raises were the result of an increase medical health care costs. Alpha Healthcare made a net profit of $A2.01m during the financial year. - - - - - The success of the private hospital companies has been attributed to their ability to attract consumers who would have normally used the medical services offered by public hospitals
Alpha appeals to investors to fund
Westmead Private - - Anita Ward
Australasian Business Intelligence October 13, 1997
SOURCE: Business Sydney
ABSTRACT: Alpha Healthcare has appointed Bankers Trust as its advisor in its quest to raise the $A40 million needed to fund its proposed 136 bed medical and surgical Westmead Private Hospital - - - Bankers Trust executive vice president, Mary Reemst, says the public health industry is a major growth area which is increasingly attracting investors, as demonstrated by the listing of Ramsay Health Care on the Australian Stock Exchange in September, 1997 with a market capitalization of more than $A200 million
HEALTH
Business Review Weekly, Monday, 27 Oct 1997
The financial crisis in health services deepened during the year, and most health enterprises reported a loss. Worse still, the overall net loss reported for the health and community services sector has blown out to $309 million from $139 million a year - -
Annual Report 1997
The report describes the purchase of HCC and the investment of Sun Healthcare. Entities owned and reported on include:-
- HOSPITALS:- Berkeley Vale, St Edmunds Private Hospital, Hunters Hill Private Hospital, Lawrence Hargrave Hospital, Mt Wilga Private Hospital, The South Highlands Private Hospital, The illawara Hospital, Bankstown Private Hospital, Charles Wentworth Private Hospital all in NSW, and the Perth Surgicentre in Western Australia
- ALPHA FAMILY HEALTHCARE:- Auburn, Marrickville, Gosford, and Liverpool
- PATHOLOGY - Australlian Diagnostic Laboratories in Western Sydney
- RADIOLOGY Alpha Imaging Group
- OCCUPATIONAL REHABILITATION -- WORKRIGHT
MAIN SHAREHOLDERS
- Sun Healthcare --------------------------- 35.7%
- Tan & Tan Developments ----------------- 8.83%
- RCI Pty Ltd ---------------------------------- 8.78%
- Berjaya Group Equity (Cayman) Ltd --- 5.57%
- Healthcare Holdings (cayman) Ltd ----- 4.09%
After the refurbishing of Hunters Hill Private Hospital
We were delighted to have as our guest The Honourable John Howard, Prime Minister of Australia to officially open the last of the new works and tour the hospital in March 1997
Alpha Westmead Project Underway
Release 11 November
- - - set for a construction start in March 1998, - - -
Alpha Healthcare's strategy calls for
further acquisitions
Australasian Business Intelligence December, 1997
SOURCE: Shares
ABSTRACT: Australian company Alpha Healthcare plans further expansion, following the recent acquisition of Health Care Corp. Managing director Paul Hopper says each of his company's divisions (hospitals, family healthcare, pathology and radiology) is looking for acquisitions at present. - - -
Acquisition of Pathology Business now
wholly owned
Release 2 Dec. 1997
- - - acquired the interest of minority shareholders in its pathology business - -
Acquisition of Diagnostic Pathology
Release 4 Dec 1997
- - - Alpha has agreed to acquire Diagnostic pathology, a Category One pathology laboratory based in Ryde, Sydney. - -
--------------------
"The acquisition is another step in the strategic development of Alpha as an integrated healthcare provider in the primary health care, diagnostic, imaging, and occupational rehabilitation markets."
$10 M Unsec. Loan finance -- plans for
conv. Note issue
Release 11 Dec 1997
- - - major shareholder Sun healthcare Group Inc has provided $10 M loan financing to Alpha unsecured. To part-finance a number of proposed acquisitions in pathology and radiology services. Alpha will seek shareholder approval to convert the loan into a two year convertible note issue - - -
Market prepares for a healthy
injection
Business Review Weekly 15 Dec 1997
The health-care sector, which has enjoyed strong recent gains, is about to be expanded markedly with a string of new offerings. Investors will be deluged by health-care offerings over the next 12 months, including the first listed hospitals property trust.
Size is all that matters to prosperous
Alpha - - - Emily Carr
Australasian Business Intelligence December 12, 1997
SOURCE: The Australian Financial Review
ABSTRACT: Alpha Health Care, an Australian private hospital operator, has recently obtained a loan worth $A10m. This money was provided by Sun Healthcare Group Incorporated, a United States-based company. This company is Alpha Health Care's biggest shareholder. The money will be used to acquire Diagnostic Pathology, a New South Wales-based company. A portion of the funds will also be used to buy a radiology firm. Alpha Health Care is to seek shareholder support to convert the loan into a convertible note issue. This issue would boost Sun Healthcare's shareholding stake in the company from 10% to 49%
Substantial Shareholder
Release 17 Dec 1997
Berjaya Group Equity (Cayman) Ltd decreased its relevant interest in Alpha Healthcare - - from - - (10.34%) to - - (2.88%)
Wooldridge injects $500 m for reform
Courier Mail 18 Dec. 1997
The Commonwealth will offer the states $500 million in extra funding to trigger a health revolution that would see fewer people using hospitals.Under radical plans unveiled last night, federal Health Minister Michael Wooldridge will offer states cash incentives to move away from traditional hospital-based care and toward innovative models of health care.
- - - - - - - - includes a $500 million capital fund to pay for construction of "health halfway houses" for people not sick enough to be in hospital but not well enough to be at home.
The so-called step down facilities would cost less because care would be less intensive.
Dr. Wooldridge said the facilities would reduce the cost of treating some patients, while clearing hospital beds for acute cases and reducing waiting lists.
Media Release re Southern pathology
Acquisition
Release 19 Dec 1997
Alpha Healthcare ('Alpha') announced today that it is to acquire a 100 percent interest in Southern Pathology, the leading pathology laboratory in the Illawarra region, where Alpha has two hospitals.
Settlement of Southern Pathology - -
-
Release 22 Dec. 1997
- - - completed settlement of the acquisition of Southern Pathology and it has also acquired the minority interests in Alpha Imaging Group, both businesses are now wholly owned.
Change pays off for Alpha
Healthcare
Australasian Business Intelligence January, 1998
SOURCE: Shares
ABSTRACT: Australia's Alpha Healthcare has significantly changed the size and nature of its business. Although it began as a small operator of rehabilitation hospitals, in January, 1998, its business structure now comprises only 35% of its original business, with the other 65% being made up of acute surgical care. It has acquired three major New South Wales private hospitals, and is developing the 136-bed Westmead Hospital. Alpha Healthcare managing director, Paul Hopper, says the company intends expanding into pathology, radiology and general practice to help offset any further turbulence in the private health insurance industry. He says the pathology services, once acquired, will operate under the Australian Diagnostic Laboratories name. Meanwhile, Alpha Healthcare has reported higher margins resulting in increased profits
Alpha shops for pathology groups
Australasian Business Intelligence February 2, 1998
SOURCE: Business Review Weekly
ABSTRACT: In December, 1997, Australian private-hospital operator Alpha Healthcare purchased the New South Wales (NSW) Illawarra region's Southern Pathology Group. Alpha aims to expand to become Australia's leading private healthcare provider in pathology, radiology, surgery, rehabilitation, and medical and psychiatric services. Paul Hopper, Alpha managing director, has also announced the acquisition of Diagnostic Pathology in Ryde, NSW. Major shareholders of Alpha are Sun Healthcare, AMP, and National Australia Asset Management. Hopper claims that the client base has grown from 500 to 2000 during 1997 and that the bulk-billed pathology market in NSW is worth $A300m per year.
Alpha invests in Victorian home health
care service - - - Amber Daines
Australasian Business Intelligence February 9, 1998
SOURCE: Business Sydney
ABSTRACT: In February, 1998, the Sydney-based company in New South Wales, Alpha Healthcare will take a 10% interest in Silver Circle which is Australia's primary provider of home support services. Alpha expects to increase its stake to 25% during 1998/99 and managing director Paul Hopper, claims that Alpha will be the first major hospital and primary health care group "to provide a holistic private health care service". Silver Circle was founded in 1991 and serves about 8,000 clients, mainly in Victoria, and Alpha's investment is a way for it to enter the Sydney market. Gerry Naughtin, CEO claims that Silver Circle will be able to develop new services. Hopper believes that the health care market will be worth $A1bn by 2005
Alpha Healthcare Shareholders Endorse
Convertible Note Issue
Alpha Healthcare Limited Press Release 18 February
1998
Alpha Healthcare ("Alpha") today announced shareholders had endorsed the issue of a A$10 million two year Convertible Note to Sun Healthcare Group Inc ("Sun"), convertible at $1.10 per share and carrying a coupon rate of 5.5 percent per annum. Conversion of the note would increase Sun's holding in Alpha by just over 10 percent to 49 percent.The Managing Director of Alpha Healthcare, Mr Paul Hopper, said: The Note issue will result in interest savings of $500,000 per annum before tax for two years compared to the current Sun loan which was used to conclude recent key acquisitions.
"This enhancement of our capital base and interest cover, strengthens Alpha's ability to pursue its ambitions to be a leading integrated healthcare provider.
----------------------------
"These develpoments have been accompanied by increased institutional support as we have come to be seen as a strong, well resourced competitor in the market place." said Mr Hopper.Mr Chet Bradeen, Sun Healthcare's representative on the Alpha Board, said that with the strengthened capital base resulting from the Note issue, Alpha was well placed for further expansion.
Multi-million dollar sale of Southern
Pathology
Illawarra Mercury 25 Feb 1998
Southern Pathology, the Illawarra's largest private pathology laboratory, has been bought out by Alpha Healthcare, the same company that last year purchased The Illawarra Private and Lawrence Hargrave hospitals.
Alpha shops for pathology groups
Australasian Business Intelligence March 1, 1998
SOURCE: Shares
ABSTRACT: Private-hospital operator, Alpha Healthcare, has acquired the Illawarra region's Southern Pathology Services. The purchase was completed in December 1997 as part of Alpha's objective to become one of Australia's leading healthcare providers of pathology, radiology, surgery, rehabilitation, and medical and psychiatric services. In December 1997, Alpha managing director, Paul Hopper, announced that the company would acquire all the equity in Diagnostic Pathology in Ryde, New South Wales (NSW). AMP Limited bought 1.5 million shares in Alpha in December. National Australia Asset Management is also a significant shareholder. According to Hopper, the bulk-billed pathology market in NSW is worth $A300m a year and is growing at about 12%.
Hospital operator cautious on gains - - -
Emily Carr
Australasian Business Intelligence March 5, 1998
SOURCE: The Australian Financial Review
ABSTRACT: Australian private hospital operator, Alpha Healthcare, has doubled its net profit for the first-half in 1997-98 from $A1.1 million to $A2.2 million, but is still wary of the future. Alpha gains half its total annual revenue from Australian health insurance funds, which are struggling under continually dropping membership.
Alpha up 100pc
THE AUSTRALIAN THU 05 MAR 1998
MEDICAL services group Alpha Healthcare remained cautiously optimistic about full-year profit after announcing a lift in half-year net profit of 104 per cent yesterday.
Hospital operator cautious on gains
Australian Financial Review 05 Mar 1998
The dire state of Australia's private health insurance industry has prompted a cautious full-year outlook from private hospital operator Alpha Healthcare. The group announced yesterday that its interim net profit for the six months to December 31 had doubled, - - -
Mixed prognosis for health care
Sydney Morning Herald 13 Mar 1998
The $2.1-billion listed private health care sector will come under more pressure in the year ahead when the fragmented industry adjusts to falling income as fewer people take up private health insurance.
Sun Healthcare Group, Inc. Acquires German Ancillary Service Provider; Sun Also Forms Australian Pharmacy and Medical Supply DivisionsPR Newswire May 5, 1998 - - - ALBUQUERQUE, N.M
In a move to continue the global expansion of its operations, Sun Healthcare Group, Inc. (NYSE: SHG) today announced it has acquired PROCEDO Stocker GmbH, a privately held German supplier- - - -
------------------
In another transaction, Sun Healthcare Group, Inc. has formed Australian divisions of its SunScript and SunChoice subsidiaries.The new divisions, based in Sydney, will provide pharmacy services and medical supplies to both affiliated and nonaffiliated long-term care facilities and hospitals in Australia. Affiliated facilities include the operations of Alpha Healthcare Ltd. and Moran Health Care Group Pty Ltd. Sun acquired a 38 percent interest in Alpha and a majority interest in six Moran hospitals in 1997.
Kevin Hendry will serve as managing director for SunScript and SunChoice in Australia.
Sun Healthcare Expands Overseas
Presence
Albuquerque Journal May 06, 1998
Sun Healthcare Group Inc. announced Tuesday it has bought a German medical supplier and created new Australian divisions of two subsidiaries.
--------------------------
Sun also formed new divisions of its SunScript and SunChoice subsidiaries in Australia. They are pharmacy and medical suppliers.
-----------------------
Although she could not give specifics about company plans, Gilliland said more growth is expected."We're always expanding," she said.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION 15/5/98 TO 24/8/98
Sun 10-Q15 May 98
In January 1995, the Company learned that it was the subject of a pending Federal investigation. The investigating agencies are the United States Department of Health and Human Services' Office of the Inspector General ("OIG") and the United States Department of Justice. At this time, the Company does not know the full scope of the investigation. However, the Company currently believes that the investigation is focused principally on whether the Company provided and billed for unnecessary or unordered therapy services to residents of skilled nursing facilities and whether the Company adequately documented the therapy services which it provided.In July 1997, the Criminal Division of the U.S. Department of Justice informed the Company that it had completed its investigation of the Company, and that it would not initiate any actions against the Company or any individuals. The investigation by the Civil Division of the Department of Justice and the OIG is still proceeding. The government continues to collect information, and the Company continues to cooperate with the investigators.
-------------------------
On or about January 23, 1996, two former stockholders of SunCare, John Brennan and Susan Bird, filed a lawsuit (the "SunCare Litigation") against the Company and certain of its officers and directors in the United States District Court for the Southern District of Indiana. Plaintiffs allege, among other things, that the Company did not disclose material facts concerning the investigation by the OIG and that the Company's financial results were misstated.
--------------------------
On September 8, 1995, a derivative action was filed by Brickell Partners against certain of the Company's current and former directors and officers in the United States District Court for the District of New Mexico, captioned BRICKELL PARTNERS V. TURNER, ET AL.
----------------------------
The Company was notified in 1997 by a law firm representing several national insurance companies that these companies believed that the Company had engaged in improper billing and other practices in connection with the Company's delivery of therapy and related services.
Alpha hospital projects delayed
Australian Financial Review 27 May 1998
Alpha Healthcare Ltd warned yesterday that delays on two key projects would cause second-half profit to be lower than the first half, but said it remained confident full-year earnings would exceed those of 1996-97 by about 60 per cent.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun 10-Q/A 22 May 98
In 1996, the Connecticut Attorney General's office and the Connecticut Department of Social Services ("DSS") began an investigation and initiated a hearing in order to determine whether the Company's long-term care subsidiary submitted false and misleading fiscal information on its 1993 and 1994 Medicaid cost reports.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun 10-K/A 22 May 98
In May 1997, the Company received court approval of the $24.0 million settlement of certain class-action shareholder lawsuits captioned IN RE SUN HEALTHCARE GROUP, INC. LITIGATION which amount was previously paid during the fourth quarter of 1996. The plaintiffs alleged that the Company and certain current and former directors and officers misrepresented or failed to disclose material facts about the OIG investigation and about the Company's operations and financial results.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun S-4/A 2 June 98
Between August 25, 1997 and October 24, 1997, ten putative class action lawsuits (the "Actions") were filed in the United States District Court for the Northern District of Georgia on behalf of persons who purchased Retirement Care's common stock, naming Retirement Care and certain of its officers and directors as defendants. The complaints allege violations of Federal securities laws by the defendants for disseminating allegedly false and misleading financial statements for Retirement Care's fiscal year ended June 30, 1996 and its first three quarters of fiscal year 1997
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun 10-Q/A 22 May 98
In addition, the OIG recently published a report, based on a limited review of patient records in six unidentified long-term care facilities in California, that found that between 4% and 80% of therapy services were medically unnecessary in such facilities.
-----------------------------
The Company is unable to determine at this time when the investigation (federal) will be concluded, how large a monetary settlement the government may seek, the nature of any other remedies that may be sought by the government, whether or when a settlement will in fact occur or whether any such settlement or any other outcome of the investigation will have a material adverse effect on the Company's financial condition or results of operation
------------------------------
In 1996, the Connecticut Attorney General's office and the Connecticut Department of Social Services ("DSS") began an investigation and initiated a hearing in order to determine whether the Company's long-term care subsidiary submitted false and misleading fiscal information on its 1993 and 1994 Medicaid cost reports. Since 1997, the investigation has also covered information for the 1995 cost year as well as cost reporting periods prior to 1993. The information under review includes submissions and representations by the long-term care subsidiary and the Company's chief executive officer. The evidentiary phase of the hearing has concluded.
Stocks hold firm
THE SUNDAY TELEGRAPH SUN 14 JUN 1998
ALTHOUGH the All Ordinaries index dipped below the 2600 barrier this week our portfolio is still up over all for the year. The stock market took a beating and some of our stocks lost the healthy gains made so far this year.
ABSTRACT: (Australasian Business
Intelligence)
- - - - Two stocks to be hit hard during the week were Biota Holdings
Limited and Alpha Healthcare.
EXTRACTS FROM SUN HEALTHCARE REPORTS TO
THE US SECURITIES AND EXCHANGE COMMISSION
Sun S-3 31 July 98
Because of operating and financing constraints resulting from acquisitions and internal growth, there can be no assurance that Sun will have adequate cash or borrowing capacity and other resources to compete effectively for future acquisitions or will be able in the future to continue to engage as actively in acquisitions as it has in the past, and uncertainties regarding reimbursement rates for therapy, the outcome of the government investigation of Sun's rehabilitation therapy subsidiary or a material reduction in such rates could limit internal growth of Sun's therapy business.SUBSIDIARIES
Sun Healthcare Group --- August 1998
------------------------
SUN HEALTHCARE GROUP INTERNATIONAL, LTD.
----------------------------
Australia: Interests in Alpha Healthcare, Ltd., which operates 10 acute care facilities and majority interest in six acute care facilities operated by Moran Health Care Group, Ltd.
Alpha Westmead Private Hospital :: Alpha
Healthcare secures final approvals and financing for new Alpha
Westmead Private Hospital $50 million Westmead Co-location Project to
commence September 1998
Alpha Healthcare Limited Press Release 4 August 1998
Alpha Healthcare ("Alpha") today announced that it had now secured final regulatory approvals and project financing for its Alpha Westmead Private Hospital, a $50 million project to provide a 136-bed tertiary acute surgical and medical hospital adjacent to the Westmead Public Hospital campus in Western Sydney.
--------------------------------
"The project will be wholly owned by Alpha through a special purpose subsidiary and project financed by way of a non-recourse loan from the ANZ Banking Group of $35 million together with financing of $18.4 million from Alpha's major shareholder, Sun Healthcare Inc. On completion of the project in early 2000, the Sun facility is planned to be repaid from proceeds of a capital raising."
-------------------------
"In addition to the Alpha Westmead Private Hospital, we have a number of opportunities to acquire further healthcare businesses under active consideration", said Mr Hopper.
Alpha Healthcare secures hospital
financing
AAP NEWSFEED August 4, 1998, Tuesday
SYDNEY, Aug 4 AAP - Alpha Healthcare said today it had secured final regulatory approval and project financing for its $50 million Alpha Westmead Private Hospital project.The project will provide a 136 bed tertiary acute surgical and medical hospital adjacent to the Westmead Public Hospital campus in Western Sydney.
--------------------------
It will be financed by way of a non-recourse loan from the ANZ Banking Group of $35 million together with $18 million from Alpha's major shareholder, Sun Healthcare Inc.
BRIEFS: Alpha's $50m venture
Australian Financial Review 05 Aug 1998
Alpha Healthcare Ltd yesterday secured final regulatory and finance approval for its $50 million Westmead private hospital project in western Sydney. The project will be funded by a $35 million non-recourse loan from ANZ and $18.4 million from Alpha's major shareholder, Sun Healthcare.
Alpha gets go-ahead for planned $50m
hospital in western Sydney
Australasian Business Intelligence August 24, 1998
SOURCE: Business Review Weekly
ABSTRACT: In August 1998 Alpha Healthcare is planning the construction of a private hospital in Sydney, New South Wales. The company says there is strong demand for more private hospital facilities in Sydney and its Alpha Westmead facility will go some way to meeting this demand.- - - - - A capital raising in 2000 will repay the loans.
Federal Minister for Health launches Alpha
Healthcare's Westmead Private Hospital
Alpha Healthcare Limited Press Release 9 September
1998:
At a ground breaking ceremony today, the Federal Minister for Health and Family Services, Dr. Michael Woolridge, launched the construction by Alpha Healthcare Limited ("Alpha") of its $55 million 136 bed Westmead Private Hospital.The new hospital is co-located with and adjacent to Westmead Public Hospital in Western Sydney and is scheduled to be operational by mid-2000. The project consolidates a major investment by Alpha in NSW.
-----------------------------
The Westmead Private Hospital project is wholly owned by Alpha through a special purpose subsidiary with project financing provided by Alpha's major shareholder, Sun Healthcare Inc. and the ANZ Banking Group.Looking ahead, Mr Hopper said the investment fundamentals of the private healthcare continued to be dynamic.
"There are opportunities ahead as governments seek to increasingly involve the private sector, either through co-located projects, or contract management of existing and new public hospitals.
-----------------------
Since hospital operations began in 1989, Alpha has grown from being a relatively small rehabilitation based private hospital operator to be the second largest private hospital group in NSW, following last year's acquisition of the three former HCC hospitals and the Westmead site from the James Hardie group.
Alpha says cautiously optimistic
AAP NEWSFEED September 14, 1998
Alpha said it is pursuing further business acquisitions in the pathology and radiology sectors as part of its strategy to reduce its primary reliance on private health insurance for revenues, from 95 per cent two years ago, to approximately 55 per cent at present time, amongst the lowest in the industry.The group said it will continue to devote resources to participate in the Victorian government's hospital privatisation program, in addition to examining selective stand alone, private hospital acquisitions which meet its investment criteria.
-------------------------
"This together with strong support from our major shareholder, Sun Healthcare Inc, places Alpha in a very strong position to continue our expansion strategy."
Alpha says cautiously optimistic for
1998/99
AAP NEWSFEED September 14, 1998, Monday
"We intend taking further advantage of continuing rationalisation of the hospital and pathology sector," Alpha's managing director Paul Hopper said."As evidenced by our success in securing the new Mildura Base Hospital, we anticipate further opportunities to participate in the provision of public health services, and in the development of private facilities, especially co-locations."
-----------------------------
An abnormal loss of $1.34 million was charged against the operating profit relating to the write off of the group's exposure to Bowral Management Company Pty Ltd which manages the Southern Highlands Private Hospital.Directors decided not to pay a final dividend "in view of the significant capital projects which the company has on foot", including the Alpha Westmead Private Hospital and the Mildura hospital.
BRIEFS: Health care group improves
The Age 15 Sep 1998 - - HELEN SHIELD
Alpha Healthcare yesterday reported a heady 52per cent rise in1997-98 net profit - - - - - . However, the 1997-98 net profit of $3.05million, up from $2.01million in 1996-97, failed to impress the market. The shares ended steady yesterday at 61cents. Analysts said they were concerned about the group's decision to record the $232,000 cost of losing the tender for the MBF Hospital Division as an abnormal loss instead of taking it above the line.
Alpha thinking big after robust 52pc
rise
Australasian Business Intelligence September 15, 1998
SOURCE: The Australian
ABSTRACT: - - - During the 1997-98 financial year the company expanded its net profit earnings rate by 52% up to $A3.05m. - - - - - During that financial year the company posted abnormal loss of $A1.34m. This figure related to costs associated with the write-down of its investment interests in Bowral Management. Alpha Healthcare will not provide its shareholders with a final dividend payout light of the company's decision to proceed with a number of capital projects
Briefs: ALPHA HEALTHCARE
Australian Financial Review 15 Sep 1998
Directors have omitted the final dividend "in view of the significant capital projects" under way.
Health fear on US link to hospital
Australasian Business Intelligence September 17, 1998
SOURCE: Herald Sun - - Jen Kelly
ABSTRACT:
On 17 September 1998, plans to privatize the Mildura Hospital have met with opposition by a local lobby group. Mildura Hospital Action Group's chairman Ross Douglass said that Mildura residents are particularly wary of foreign owners. The action group believes that Mildura needs a new hospital, but not a private hospital. A group led by Alpha Healthcare Limited, whose major shareholder is the US health company Sun Healthcare Group, plans to build, own and operate the 139-bed New Mildura Base Hospital. Alpha Healthcare already runs five hospitals in New South Wales, and anticipates that the New Mildura Base Hospital will generate $A30m a year
Alpha begins construction of new private
hospital in Western Sydney
Australasian Business Intelligence September 18, 1998
SOURCE: Business Sydney - - Dominique Antarakis
ABSTRACT: An Australian private healthcare provider has continued its expansion of recent years. Alpha Healthcare has commenced construction of its new 136-bed hospital in Western Sydney.
Alpha looking better
Australasian Business Intelligence September 20, 1998
SECTION:
SOURCE: Sunday Telegraph
ABSTRACT: - - - - - -That represents an increase of nearly 100% - - - -. The Australian healthcare organisation recorded an abnormal loss of $A1.34m because of its investment in Bowral Management Co. This company is the manager of the Southern Highlands Private Hospital.
Alpha gets go-ahead for planned $50m
hospital in western Sydney
Shares 01 Oct 1998
Alpha Healthcare has received final regulatory approval and project financing for its $50 million Alpha Westmead private hospital in western Sydney.
Health care looks set for better results
following poll
Australian Financial Review 13 Oct 1998 - - - Robert
Guy
The re-election of the Coalition could see the subdued health-care sector produce solid returns for investors in the future.ABSTRACT: (Australasian Business Intelligence)
- - - - It is believed that the Government's policy of increasing rebates to people using private health insurance will lead to greater private health insurance membership as an alternative to Medicare
Funds crisis: private hospitals now
thinking public
Australian Financial Review 14 Oct 1998
The private hospital system is trying to cut back on its dependence on private health funds by embarking on joint projects with public hospitals, and contracting out its services. Private hospitals are seeing their source of funds shrink - as the health funds suffer declining membershipABSTRACT: (Australasian Business Intelligence)
Australian private hospital operators are being driven to reliance on public funds as private health funds shrink. Ramsey Health Corporation Ltd says its reliance on private funding has fallen to 43%. Australian Hospital Care Ltd, Mayne Nickless subsidiary Health Care of Australia, Ramsey and Alpha Healthcare Ltd are pursuing co-location joint ventures with public hospitals to gain greater access to private funds. Health sector analyst for BT Alex Brown, Ray Bright, who previously worked as ceo of the South Australian Health Commission, says public hospitals need investment to redevelop so are looking to arrangements with private providers. Part of a special report on "Health Care"
State contract a boost for Alpha's
expansion plans
Australasian Business Intelligence October 19, 1998
SOURCE: Business Review Weekly
ABSTRACT: Alpha Healthcare will build, own and operate the new 139-bed Mildura Base Hospital. The Victorian Government selected Alpha Healthcare, which has a significant market share in the private health sector in New South Wales. - - - - The Victorian Government will acquire Alpha's services on a service-fee basis, mainly for operating costs, a return on equity, the purchase of equipment and maintenance costs
HALT HOSPITAL SALE, SAYS
OPPOSITION:
THE HERALD-SUN: 19 Oct 1998 BY ELISSA HUNT
ABSTRACT: (Australasian Business Intelligence)
The Victorian Opposition has called on the Victorian Government to delay the privatisation of Mildura Hospital. Alpha Healthcare was announced as the preferred operator of the hospital during September 1998. The largest shareholder in Aplha Healthcare is Sun Healthcare. Victorian shadow health minister, John Thwaites, says Sun healthcare has been investigated by the US Justice Dept and the US Dept of Health & Human Services. General manager of corporate projects of Aplha Healthcare, Craig Jones, says Sun Healthcare's investment in the company has been investigated and approved by the Foreign Investment Review Board. The US investigation did not result in charges being laid
TANDARD & POOR'S DOWNGRADES SUN
HEALTHCARE GROUP; OUTLOOK NOW NEGATIVE:
PR NEWSWIRE World Reporter Oct. 20 1998
Standard & Poor's today lowered its ratings on Sun Healthcare Group Inc. and its unit, Sun Financing I, reflecting operating weakness. In addition, Standard & Poor's revised its outlook on the company to negative from stable.
-----------------------------
Moreover, given the company's heavy debt burden, financial flexibility is rather limited.
Mildura hospital firm in US probe
The Age 28 Oct 1998
A company linked to the privatisation of the Mildura Hospital was under investigation in the United States for "improper conduct", independent MP Russell Savage told Parliament yesterday. Mr Savage said the American company Sun Healthcare had been under investigation by the US Federal Government - - -ABSTRACT: (Australasian Business Intelligence)
On 27 October, 1998, Russell Savage, an independent member of the Victorian Parliament stated that Sun Healthcare was under investigation. This company was being investigated by the Government of the United States and the state of Connecticut. It has been claimed that the company lodged false or misleading financial information with respect to Medicaid costs.
Premier attacked over hospital tender
row
Australasian Business Intelligence October 30, 1998
SOURCE: Herald Sun - - - Kristin Owen
ABSTRACT: On 29 October 1998, the Victorian Premier, Jeff Kennett, was accused of misleading the Victorian Parliament. On 27 October 1998, the Victorian Parliament heard that the Victorian Government's preferred tenderer for the Mildura Base Hospital, Alpha Healthcare, has a US shareholder, Sun Healthcare Group, that is being investigated by Connecticut authorities. Kennett said that the investigation has ceased. On 29 October 1998, the Victorian Deputy Opposition leader, John Thwaites, said that the Connecticut authorities have confirmed in writing that the investigation of Sun Healthcare is ongoing
Alpha negotiates hospital purchase
Australasian Business Intelligence October 30, 1998
SOURCE: Business Sydney - - - Dominique Antarakis
ABSTRACT: An Australian hospital fund is set to be wound up, and its major asset to be sold. The Australian Healthcare Investment Fund (AHIF) was established in 1995 in order to build the Southern Highlands Private Hospital in New South Wales in conjunction with Alpha Healthcare. AHIF (which is managed by Tyndall Funds Management) has leased the hospital (operated by Alpha) to Bowral Management (of which Alpha owns a 50% stake). The continuing unprofitability of the hospital has prompted Tyndall to wind up the fund and offer the hospital to Alpha for $A5 million
GST: a healthy profit outlook
Australasian Business Intelligence November, 1998
SOURCE: Shares - - - Robert Gottliebsen
ABSTRACT: The Australian Government proposes the introduction of a goods and services tax in 1998. The investment prospects of industries affected by this tax are examined. - - - - - Major changes are predicted to occur in the private health sector, since investment stocks for private hospitals have suffered as a result of declining numbers of members of private health funds. - - - - - - - strong future earning potentials are predicted for Alpha Healthcare, although there is a possibility of a takeover by its major shareholder the Sun Corporation.
Profits in takeover targets
Australasian Business Intelligence November 1, 1998
SOURCE: Sunday Telegraph - - - Keith Gosman
ABSTRACT: Brent Mitchell from Shaw Stockbroking says that there are around 25 companies on the Australian Stock Exchange which are takeover targets. - - - Some potential targets are Alpha Healthcare, - - -
ALA ALPHA HEALTHCARE Annual Report
AAP NEWSFEED November 10, 1998
TOP TWENTY SHAREHOLDERS AS AT 28/09/1998NAME .................................................... NO.OF ORDINARY SHARES HELD
Health bidder in US tax probe, says
Labor
The Age 10 Nov 1998
Furniture for private use, luxury car leases, overseas trips and a ``Murder by Invitation" function were all claimed as taxpayer rebates by the company now bidding for a slice of Victoria's privatised hospital system, according to the State Opposition. The Opposition has called on the Government
VIC: Questions raised over Mildura
Hospital bidder
AAP NEWSFEED November 11, 1998
The Victorian Opposition today increased pressure on the government over the privatisation of Mildura Hospital, pointing to evidence of poor patient care by the preferred bidder's parent company.Opposition health spokesman John Thwaites told parliament there had been a series of incidents at centres run by the US-based company Sun HealthCare, including the rape and pregnancy of a comatose woman at a rehabilitation centre in Lawrence, Massachusetts.
Sun - - - - is also under investigation in Connecticut for allegedly providing misleading financial returns.
-----------------------
The paper also said authorities recommended public health funding be withdrawn from a Sun centre in Randolph, Massachusetts, after two patients died in six months after being given incorrect medication.An aide from another home in Wilmington, Delaware, was charged with mistreating patients earlier this year, including forcing one to eat her own faeces and slapping and spitting on others.
-----------------------------
"There is continuing probity (checking) by the health department into the preferred bidder ... until the process is completed no contract will be signed," he (Premier Jeff Kennett) told the house.
-----------------------
But Mr Thwaites told AAP the probity investigation was inadequate because it was being conducted "in secret"."The government should do an open investigation into Sun's performance in the USA and whether the Victorian government was fully informed," he said.
"There is already sufficient evidence to disqualify this company from being given a Victorian public hospital to run."
ALA - Chairman's AGM Address to
Shareholders
Australian Associated Press November 30, 1998
Chairman's AGM Address to Shareholders - BARRIE MARTIN
This has been a busy year which saw the company substantially expand its hospital operations with the acquisition of the three former Health Care Corporation hospitals and selective expansion into ancillary healthcare services.
---------------------------
As a result, operating revenue more than doubled to $ 88.95 million (up 108 percent).
--------------------------
Importantly, we have seen a significant enhancement in the diversity of our earnings, with fifty-five percent of our revenue now being funded by private health insurance compared with over eighty percent two years ago.We also saw the introduction of Sun Healthcare Inc as a major shareholder and subsequent strengthening of our capital base.
-----------------------
The second major initiative was seeking appointment as preferred tenderer for the new privatised 139-bed Mildura Base Hospital to be developed under a fifteen-year build-own-operate contract. We are delighted to have won that tender against formidable competition, however we cannot give a firm timetable for the project until the Victorian Government has completed a probity check on Alpha and Sun Healthcare, our major shareholder. Whilst probity clearance has been approved on Alpha, checks on Sun Healthcare are continuing.Other acquisitions have included a Sydney based X-Ray service, a strategic holding in a Victorian based home case service, Silver Circle and we have also consolidated our holdings in the pathology industry.
We now enter a capital-intensive phase as we work towards bringing Westmead on-line, and later, Mildura Base Hospital. Both projects have been fully financed by the ANZ Bank and the Sun Healthcare Group.
In light of these capital commitments Directors have decided not to pay a final dividend.
-------------------------
In all, last year was one characterised by uniquely high growth.
-------------------------
Now I hand you over to Mr Paul Hopper for the Managing Director's Review ...(M.D.'s Presentation) Paul A Hopper MANAGING DIRECTOR
It will come as no surprise that our caution was well founded. As shareholders will be aware from the warning contained in the annual report, the Company expects a difficult trading environment in 1998-99.
-----------------------
Private hospitals have not fared well during the first quarter, particularly in New South Wales - - - -. Nationally, private health insurance is at an all time low with only 30.0% of the population covered.
-------------------------
In addition to the industry wide softness which has affected the Hospital Division, we have encountered some higher than expected costs in the integration of the Liverpool and Ryde pathology businesses.
-------------------------
As a result of the downturn in the Hospital Division and parts of the Pathology Division, the 1998-99 first half profit will be significantly lower than the corresponding period in 1997-98.- - - - our 50% owned joint venture management company, Bowral Management Company Pty Limited - - -has now been placed in Voluntary Administration. - - - - - Given BML's ongoing trading losses, Alpha's continued support could not be justified. Alpha may record an abnormal loss from its investment in BML as a result of previous commitments of support to BML.
-----------------
Nonetheless we expect the full year profit picture will be lower than that achieved last year.
ALA ALPHA HEALTHCARE LIMITED
AAP NEWSFEED November 30, 1998
ASX Company Announcement
Alpha Healthcare Limited advises that its 50% owned associate company, Bowral Management Company Pty Ltd (BML), has today appointed Mr K.W. Skinner end Mr C.R. Campbell of Deloitte Touche Tohmatsu as Voluntary Administrators to that company. - - - due to previous commitments of support from BML shareholders (including Alpha), an abnormal loss may be incurred
AHF: AUSTRALIAN HEALTHCARE INVESTMENT
FUND
AAP NEWSFEED December 2, 1998
ASX Company Announcement
On 21 October 1998 we advised the market that Alpha Healthcare Limited had made an indicative offer to purchase the Southern Highlands Private Hospital. - - - - - Alpha Healthcare Limited has now withdrawn its indicative offer
Health tender raises concern
The Age 07 Dec 1998
A company linked to the privatisation of the Mildura hospital has been banned from running any more nursing homes in California after a series of violations that endangered patients' health. - - -
VIC: Bidder for Mildura Hospital under a
cloud in US
AAP NEWSFEED December 7, 1998
An American company linked to the privatisation of Mildura Hospital had incurred several fines in California for putting patients' health at risk and had a nursing home licence revoked, the state opposition said today.Opposition Health spokesman John Thwaites, who has previously raised concerns about Sun Healthcare, said the company could not be trusted to run a Victorian public hospital.
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In December last year, the California Health Services Department revoked Sun's licence to operate the Mission De La Casa Nursing Home in San Jose after it was repeatedly fined for patient care violations, Mr Thwaites said.Sun, the major shareholder in Alpha HealthCare which is the preferred bidder, was fined a total of $53,000 for 10 incidents of patient violations in the year from November 1996.
"The last fine on 18 November 1997 totalled $30,000 and was an "A" type violation, which means there is imminent danger to patients' health," Mr Thwaites said.
The company was told by the Californian department late last year it would not receive future licences until it demonstrated appropriate care could be provided in its current facilities.
Mr Thwaites also said at least four lawsuits had been filed against Sun for patient abuse at the Fountainview Nursing Home in Sacramento, alleging wilful misconduct, intentional infliction of emotional distress, negligence and one case of wrongful death.
The latest revelations again showed the government's "so-called probity investigation" for the Mildura Hospital privatisation was a joke, he said.
Mr Knowles said the probity checks had taken longer than normal because it involved an American company but they were within weeks of completion.
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He has also revealed the company is under investigation in the state of Connecticut for submitting false and misleading information to get payments from Medicaid - the US equivalent of Medicare.
State bidder linked to snag in US
Australasian Business Intelligence December 7, 1998
SOURCE: Herald Sun - - - Kristin Owen
ABSTRACT: United States (US) corporation Sun Healthcare has been refused a licence to operate a nursing home in California (in the US). California's Department of Health must be "fully satisfied" that Sun can provide adequate patient care at its facilities before it will issue a licence to Sun. This poses a dilemma for the Victorian Government as Sun is connected to a bid by Alpha Healthcare for the licence to run the Mildura Hospital (Victoria). Alpha is the preferred bidder, but the Victorian Minister of Health, Rob Knowles, concedes that the Victorian Department of Health has to complete its due diligence checks at which time it will become known whether Sun and Alpha will officially gain the contract
Alpha Healthcare Draws on Sun for
Financing and Plans Convertible Note Issue to Consolidate Loan
Alpha Healthcare Limited Press Release 23 December,
1998
Alpha Healthcare ('Alpha') today announced major shareholder Sun Healthcare Group Inc ('Sun') has provided A$4.75 million loan financing to Alpha, to meet the ongoing working capital requirements of the Group.Alpha will seek shareholder approval to convert the loan into a two year convertible note issue with a coupon rate of 12% p.a., convertible into fully paid ordinary shares at $0.62. Baron Partners has been commissioned to produce the Independent Expert's Report on the proposal ahead of the required Shareholders' Meeting.
----------------------------
Mr Hopper said that the ultimate conversion of this proposed note would, on Alpha's current issued capital, increase Sun's holding in Alpha by just over 6.5 percent to 55.4 percent, assuming its existing $10 million note was also converted in December, 1999. Foreign Investment Review Board consent would need to be obtained prior to the notes being converted.
Alpha pulls out of Aust hospital
project
AAP NEWSFEED December 23, 1998, Wednesday
Alpha Healthcare Ltd said it has pulled out of a major Victorian hospital project after a government review of its major US stakeholder.Alpha today advised the Victorian Government it will not proceed with constructing and operating the Mildura Base Hospital.
----------------------------
Managing director of Alpha Healthcare Paul Hopper said the decision to withdraw from the Mildura project was based on government advice it was not satisfied with the results of a review of Alpha's major shareholder, Sun Healthcare Group of the United States.Alpha said it believed the government's advice and review process was based on incomplete information and influenced by premature conclusions that were inaccurate and unfairly prejudicial to both Sun and Alpha.
VIC: Mildura privatised hospital plans hit
snag
AAP NEWSFEED December 23, 1998
Krista Hughes and Andra Jackson
The Victorian government's plans for a new privatised hospital in Mildura suffered a setback today when the lead bidder pulled out, blaming unfair treatment from the Kennett administration.Alpha Healthcare was forced to pull out of the project when its major shareholder, the US-based Sun Healthcare Group, withdrew its financial backing, after a state government review of Sun's operations.
Sun's Australian managing director Chet Bradeen said a campaign of misinformation by the state opposition had turned the tender process into a political issue.
It had been clear from the government's "tone" in requesting information about unsubstantiated opposition claims of poor patient care and false Medicare invoices that it thought the issue was too hot to handle, he said.
---------------------------
"I think the government, in my view, has not treated Sun fairly and the facts fairly, and I think it's had a detrimental affect on Alpha because we've been a shareholder, and I think Alpha's been dragged down in the process," he told AAP.
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Alpha managing director Paul Hopper said he believed the review - which is still incomplete - was influenced by premature conclusions.
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Health Minister Rob Knowles said the government would now have to choose between reserve bidders Ramsar Healthcare and Epworth Hospital to get the hospital built by the target date of early 2000.He blamed Alpha's withdrawal on the opposition's "smear campaign", saying the government was disappointed, but understood the companies wanted to "maintain their very high credibility".
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"It was totally inappropriate for the Kennett government to go ahead and appoint Alpha as the preferred bidder for the Mildura Hospital privatisation, before carrying out proper probity checks," he said.
Smear campaign blamed for Alpha's Vic
hospital pull-out
AAP NEWSFEED 23 Dec 1998
Andra Jackson
Health Minister Rob Knowles told reporters today: "They advised us that they were withdrawing for commercial reasons relating to the on-going smear campaign that was being conducted, and their desire to maintain their very high credibility."
-----------------------
He said there was nothing wrong with Alpha Healthcare Ltd, the company nominated as the preferred proponent for the project - part of the government's policy of ushering private companies to build hospitals in Victoria - last August."But one of their major shareholders, with the potential to become the controlling shareholder, has been the subject of accusations and a smear campaign by the State Opposition."
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The Health Minister said another reason for the project delay had been waiting for the probity audit to be completed on the Sun Healthcare Group, Alpha's major America shareholder.
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It was "a mammoth task given the size of the company" and is still not completed.
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"So the federal government's body has cleared them and one assumes the NSW Labour Government is happy with them as they have agreed to co-locate a hospital between Alpha and one of their major public hospitals."
VIC: US health group blames govt for
Mildura pull-out
AAP NEWSFEED December 23, 1998
The US-based Sun Healthcare Group said today it pulled out of the race to build and run a new privatised hospital in Victoria because of the state government's handling of the issue.
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Sun, which owns 38 per cent of Alpha, said it had been the target of a campaign of "misinformation" in recent months, and believed the government had been swayed by political pressure to frown on Alpha's bid.Australian managing director Chet Bradeen said claims by the state opposition that Sun had been banned from running nursing homes in California and had a poor record of patient care were without foundation.
"Situations like that, where we've provided the information, the government has, I don't think been able to evaluate in an accurate way just how the opposition has misused that information and we've been judged as guilty before proven innocent," he told AAP.
US giant abandons bid for Mildura
hospital
The Age 24 Dec 1998
The United States nursing home giant Sun Healthcare has pulled out of its bid to build and operate the Mildura Hospital, accusing the State Government of being naive and bowing to political pressure. But the Health Minister, Mr Rob Knowles, blamed the Opposition and some Mildura locals for Sun's withdrawal.ABSTRACT: (Australasian Business Intelligence)
A US company has withdrawn its bid to build and operate the Mildura Hospital. The US giant Sun Healthcare has withdrawn saying it was the subject of a political smear campaign. Details of the failed bid were published on 24 December 1998. Sun Healthcare is the major shareholder in the Australian-based bidder, the Alpha Healthcare consortium. The Labor Opposition had revealed that damaging allegations had been made about Sun Healthcare in the US. It also revealed that Sun Healthcare had been banned from running any more nursing homes in California after patient care violations. It revealed that there had been three unnatural deaths at Sun nursing homes in the past year.
Hospital bidder pulls out
Australasian Business Intelligence December 24, 1998
SOURCE: Herald Sun - - - - Kristen Owen
ABSTRACT: On 24 December 1998, Alpha Healthcare has withdrawn from its position as a front-runner to operate a new Victorian hospital. Alpha's move comes as its principal backer, the US-based Sun Healthcare has withdrawn support for the Mildura Base Hospital bid, blaming the Victorian government's handling of the bid. Alpha is blaming pressure from anti-privatization groups. The Victorian Government Minister for Health, Rob Knowles, said a smear campaign run by the Victorian Opposition against Sun has forced Alpha to pull out
US firm quits project, blasts Kennett
THE AUSTRALIAN THU 24 DEC 1998
A US corporation yesterday attacked the Kennett Government, saying that it would have to "re-evaluate" whether it should do business in Victoria. Sun Healthcare's attack came after the company withdrew from a consortium set to build and operate the - - -ABSTRACT: (Australasian Business Intelligence)
A US company has withdrawn from a key healthcare project in Victoria. Sun Healthcare has withdrawn from a consortium that was about to build and operate the Mildura Private Hospital. The company attacked the Victorian Government of Jeff Kennett on 23 December 1998. Sun Healthcare fired a parting shot saying it would reconsider ever doing business in Victoria again. - - - - the Labor Opposition had raised a political storm over Sun Healthcare, alleging that its US companies were being investigated for fraud and a series of violent incidents including patient deaths. The Victorian Government was running probity checks on Sun Healthcare
Half Yearly Result to 31st December
1998
Alpha Healthcare Limited Press Release
The Board of Alpha Healthcare Limited today announced an operating loss after tax and abnormal items of $1.781 million ($2.243 million profit December 1997). No dividend is declared.The loss of $1.781 million was after charging an abnormal expense of $0.944 million incurred on the Group's successful tender for the privatisation of the Mildura Public Hospital in Victoria, from which Alpha subsequently withdrew following an investigation by the Victorian Government into the affairs of Alpha's major shareholder, Sun Healthcare of the United States.
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Directors were disappointed in the operating performance of the Group, the results being below plan in a difficult environment particularly for health insurance. Alpha welcomes the introduction of the 30% rebate and expects benefits will flow through during the second half.
----------------------------
Our Primary Care Division, occupational rehabilitation (Workright) and Radiology Divisions made sound, although modest contributions.Whilst our Pathology Division contributed approximately $12.5 million in revenue, its profit performance was most disappointing during the period primarily as a result of integration and management challenges at our Ryde laboratories, producing a return not keeping with its market value. As a result, subsequent to 31st December 1998, the Group capitalised on a buoyant market for pathology businesses and sold the division to Sonic Healthcare at a profit of approximately $6.0 million which will be brought to account in the second half.
-------------------------
In light of the difficult industry conditions, the Board has instigated a major cost reduction program across all activities in the Group. - - - - - As a result of these redundancies, in excess of $0.75 million has been eliminated from the Group's overheads. At facility level, cost review programmes are underway, and these initiatives are expected to enhance results during calendar 1999.
----------------------
The Board is considering a number of strategic initiatives in related fields which will build on our existing expertise and which are not capital intensive.
Substantial Profit as
Alpha Healthcare exits Pathology Division
Alpha Healthcare Limited Press Release 21 January,
1999
The directors of Alpha Healthcare Limited ('Alpha') today announced they had completed negotiations for the acquisition of Alpha's Pathology Division by Sonic Healthcare Limited. The transition is now unconditional and settlement is expected on Saturday 23 January 1999.
-------------------
Announcing the decision to exit its pathology services, Alpha's Managing Director, Mr Paul Hopper said "the resolution to accept an extremely attractive offer was taken after a comprehensive review of the growth prospects for pathology in New South Wales, which Alpha concluded were narrow for Alpha given the critical mass of its competitors, Sonic and Mayne Nickless, and the competitive prices being paid to increase market share through acquisition".
-----------------------
The transaction will reduce Alpha's debt to equity ration from 130% to 85% and will increase net tangible assets from around 59c to approximately $1.06 per share."Notwithstanding Alpha's strategy to widen the revenue base outside the traditional private hospital business, Directors believe the opportunity to significantly reduce the borrowings of the Group and thereby enhance the balance sheet, plus a divestment price well in excess of book value only two years after our entry into pathology, could not be refused." Mt Hopper said.
Alpha sells off pathology arm
The Age 22 Jan 1999 - - - Helen Shield
Alpha Healthcare is to sell its pathology business to the rival Sonic Healthcare for an estimated $35 million.ABSTRACT: (Australasian Business Intelligence)
- - - - Alpha's managing director, Paul Hopper, predicted poor growth prospects for Southern Pathology Services and Australian Diagnostic Laboratories. Alpha will use the proceeds of the sale to retire debt. - - - - - Alpha has experienced tough trading times over the past six months GRAPHIC: photograph
Sound deal by Sonic
Australasian Business Intelligence January 22, 1999
SOURCE: The Australian Financial Review
ABSTRACT: Australian firm Sonic Healthcare Ltd is acquiring the pathology business of Alpha Healthcare Ltd on January 21, 1999. Alpha will use the proceeds of the deal to pay off 60% of its $A35m in borrowings, - - -
Private predators
Australasian Business Intelligence January 26, 1999
SOURCE: The Bulletin - - - Bruce Jacques
ABSTRACT: The $A1.7bn rebate scheme passed in the Australian parliament in 1998 should boost membership of private health insurance funds in 1999. However, despite Australia's $A45bn annual health expenditure, listed health stocks are performing poorly. - - - Private hospitals which appear vulnerable include Australian Hospital Care, Healthscope, Alpha and Sonic. Only Mayne Nickless and Ramsay Health Care seem safe. Potential predators include large overseas health care groups and Mayne, which has made over $A1bn from the sale of its interest in Optus. - - -
Alpha pulls out of Mildura Hospital
Australasian Business Intelligence January 29, 1999
SOURCE: Business Sydney - - - Dominique Antarakis
ABSTRACT: Alpha Healthcare Limited has withdrawn its tender for the construction, ownership and operation of the Mildura Base Hospital in Victoria. Alpha's managing director, Paul Hopper, says that the decision was based on Victorian Government advice that Alpha's major shareholder, Sun Healthcare Group Incorporated, had not satisfied the review process. Alpha's subsidiary, Bowral Management Company Pty Ltd, has had to place the Southern Highlands Private Hospital under voluntary management
Sonic Healthcare buys Alpha pathology
Australasian Business Intelligence January 29, 1999
SOURCE: Business Sydney - - - - Dominique Antarakis
ABSTRACT: Alpha Healthcare Limited has sold its pathology divisions to Sonic Healthcare Limited. Paul Hopper, managing director at Alpha, says that the sale will allow Alpha to divest itself of 60% if its $A35 million debt, including the $A4.75 million owed to major shareholder, Sun Healthcare Group Incorporated. Hopper said that the attractive offer and opportunity to reduce borrowings could not be refused. - -
Notice of Extraordinary General Meeting
for 26/2/99
AAP NEWSFEED March 12, 1999
Your Directors have resolved to call an Extraordinary General Meeting on 26 February, 1999 to seek approval to issue a A$4.75 million convertible note to Alpha's largest shareholder, Sun Healthcare Group Australia Pty Ltd ("Sun")
------------------
If the proposed note is converted over the next 24 months into fully paid shares in Alpha ("shares"), Sun's holding in Alpha will rise to 47.4%. If in addition to this conversion, Sun exercise as rights of conversion under their existing A$10 million convertible note, Sun's holding in Alpha would rise to 55.4%. On 30 December 1998, Sun lent to Alpha A$4.75 million to enable Alpha to fund loan facilities which had reached expiry.
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- - - - - the approval of the above mentioned unassociated shareholders will also be sought to the issue of up to 7,661,290 shares to Sun, this being the maximum numbers of shares it would be entitled to have allotted and issued to itself if it elected to convert all of the debt represented by the convertible note into shares.
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- - - in this instance directors recommend the issue of the convertible notes at that level given that it is supported by the current share price and enabled the prompt refinancing of borrowings which had reached maturity date. Your directors, - - unanimously support approval of both the resolutions set out in the Notice.
Alpha Healthcare Result of Extraordinary General Meeting
Alpha Healthcare Limited Press Release 26 Feb 1999
The Directors of Alpha Healthcare Limited today announced that at an Extraordinary General Meeting held on 26 February 1999, shareholders voted in favour of the two resolutions relating to the issue of a convertible note and subsequent allotment and issue of shares to Sun Healthcare Group Australia Pty Limited.
HEALTHCARE SETBACK
THE AUSTRALIAN FRI 12 MAR 1999
MEDICAL services group Alpha Healthcare Ltd has posted a net first-half loss of $1.78 million but expressed optimism with benefits expected in the second half from the Government's health rebate.
Sun Healthcare form 10-K filing to the US Securities and Exchange Commission (SEC) on March 31,1999:EDGARPlus(R) FORM-TYPE: 10-K FILING-DATE: March 31, 1999
EXTRACT ONLY of Australian interests
- Sun Healthcare Group, Inc.) ....................................Australia
- Sun Healthcare Group Australia Pty Limited....................Australia
- Alpha Healthcare Limited (38.2% interest)...................Australia
- Sun Moran Healthcare Group Australia Pty Lim