MedPartners to Buy InPhyNet Medical

Birmingham, Ala.-based MedPartners Inc. said it will buy InPhyNet Medical Management Inc. for stock valued at $451 million, expanding its dominance in the business of managing doctors’ practices. The acquisition is MedPartners’ seventh in the last year, including its $1.9-billion September purchase of Caremark International Inc. It bolsters MedPartners’ status as the largest provider of services to doctors who work in hospitals and extends its presence in the Southeastern U.S. MedPartners is leading a consolidation drive among companies that manage physician practices, giving them more clout in negotiating contracts with HMOs and hospitals. Still, the rapid pace raises concerns about a 4-year-old company that has never posted an annual profit. MedPartners shares fell $1.75 to close at $20.125 on the NYSE. Fort Lauderdale-based InPhyNet shares rose $2.875 to close at $25.625 on Nasdaq.