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Spotlight: Physician Management Firms to Merge

November 12, 1996

San Diego-based FPA Medical Management Inc. has agreed to buy Downey-based AHI Healthcare Systems Inc. for $130 million in stock, a deal that would create one of the largest companies handling doctor's office chores in the U.S. The pact, which values each share of AHI stock at $8.75, would form a physician-practice management company with revenue of about $1 million, providing service to more than 800,000 managed-health-care plan members in 25 states, including California.

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