FPA Medical Misses Interest Payment
FPA Medical Management Inc., a money-losing operator of physicians practices, said it failed to make a $2.6-million interest payment due Wednesday and that company founder Sol Lizerbram stepped down as chairman. FPA named Chief Executive and President Stephen Dresnick to replace Lizerbram, who will remain as a director and serve as a consultant to the company. San Diego-based FPA said it’s “speaking with bondholders” of $80.65 million in convertible debt. FPA shares fell 9 cents to close at 78 cents on Nasdaq after touching a record low of 75 cents. The company also said the state of California issued a cease-and-desist order to one of its 100 units, FPA Medical Management of California, demanding that it address a failure to reimburse providers and raise its net equity to meet state standards. Regulators may take further action if the company doesn’t comply with the request by Sept. 15, the company said.