Company news

July 18, 2011

Noblesville-based Riverview Hospital is set to scoop up nine physicians from Indianapolis-based physician group American Health Network. The nine doctors include seven in Noblesville and two in Sheridan. American Health Network also will transfer its lease on a medical office and imaging center on River Avenue in Noblesville. The deals are set to close on July 29. Riverview officials declined to comment. Indianapolis-area hospitals have acquired a wave of physicians in the past three years. The deals are driven in part by flat or in some cases declining reimbursement rates for physicians, looming new expenses for electronic medical record systems and new provisions in the 2010 health reform law that encourage doctors and hospitals to work more closely.

Joblessness and economic jitters continue to weigh on the orthopedic industry, according to the latest financial report from Warsaw-based Biomet Inc. The company’s U.S. sales declined 3 percent to $412 million in its fourth quarter ended May 31, compared with the same quarter a year ago. Worldwide sales rose 2 percent to $715.2 million, but that was only because of currency fluctuations since this time last year. “During our fiscal fourth quarter, our sales results continued to be challenged by industry volume and price pressures that affected our sales throughout fiscal 2011,” Biomet CEO Jeffrey Binder said in a prepared statement. For the year, Biomet’s sales rose just 1 percent to $2.7 billion. The lack of growth forced Biomet to lower its valuation of many of its assets, leading to various accounting charges that produced yearly and fourth-quarter losses. Biomet’s results are watched as a key bellwether for the rest of the orthopedic industry, including Warsaw-based Zimmer Holdings Inc., which will report financial results later this month.

Wishard Health Services announced $3.2 million in fundraising for its new hospital last week, part of a campaign that has already exceeded its $50 million goal. An employee-giving campaign for the new Wishard medical center brought in about $2.2 million, making the campaign one of the largest of its kind for a public hospital, according to Wishard officials. More than 1,000 employees gave $1.1 million to the campaign, and an anonymous donor provided a dollar-for-dollar match. Wishard officials said employee giving rose 40 percent after the June 22 announcement of a $40 million gift from Indianapolis developer Sidney Eskenazi and his wife, Lois. The hospital complex that is to open in 2014 will be named the Sidney and Lois Eskenazi Hospital. Also, Wishard will rename itself Eskenazi Health in 2014. Wishard also received $1 million toward the new hospital from Eli Lilly and Co. Foundation. Lilly's name will grace the lobby of the new hospital.