Friday, May 7, 1999 | 11:07 a.m.
Two Las Vegas medical companies founded by Jack London are being sold to Consolidated Medical Management Inc. of Baton Rouge, La.
Consolidated and London today declined to reveal financial terms of the merger, in which Consolidated is acquiring Nevada Resort Medical Services and Practice Management Group of Nevada.
Nevada Resort Medical Services is a tourist-oriented extended hours urgent care clinic in the Imperial Palace hotel-casino on the Las Vegas Strip. The clinic, open seven days per week, also serves Imperial Palace workers and their families.
London said his practice management company provides ongoing business consulting services to about 120 physicians in Nevada, Utah, California and Arizona.
London said his two partners are being bought out and that as part of the deal he will become chairman and chief operating officer of Consolidated Medical Management. Consolidated Chairman LaMar Laster resigned. Dale Hannegan will continue as acting chief executive of Consolidated Medical, London said.
London's companies employ 27 people, not counting contract medical professionals. London said the merger will enable the combined company to grow in Las Vegas and into Texas, a new market.
"It requires capital and a management team" to expand, he said.
"This enhances the business tenfold," London said. "It gives us the opportunity to tap into a reservoir of talent and upgrade services to clients."
London plans to remain in Las Vegas.
The merger will bring Consolidated Medical's mobile diagnostics services to London's Las Vegas operations. Consolidated Medical and the London companies also plan to expand into the business of outpatient psychiatric care as part of the deal, London said.
Consolidated Medical is a publicly owned company with its stock traded on the OTC Bulletin Board. Its annual report says it has 19 employees and is primarily in the business of providing diagnostic ultrasound imaging services to doctors offices, clinics, hospitals and skilled nursing centers.
Consolidated Medical reported a net loss of $875,599 before taxes on revenue of $921,502 in 1998. Its operating loss was $504,255.
Despite the loss, Consolidated Medical said its merger with the London companies includes a new business plan aimed at converting the combined organization into a vertically integrated medical products and service company.
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