FPA Medical to Buy HealthCap in Stock Swap

FPA Medical Management Inc. agreed to buy closely held HealthCap Inc. of San Diego in a stock swap that analysts valued at about $47 million. Under the agreement, the third-largest physician-practice management firm will issue 2.1 million shares, analysts said. The firm’s stock rose 62.5 cents to close at $22.25 on Nasdaq. FPA, also based in San Diego, said the agreement would add 2,100 doctors in five states. FPA had 20,000 affiliated doctors in 24 states, according to a May report by Credit Suisse First Boston. FPA expects HealthCap to have 1997 revenue of about $55 million. Physician-practice management firms manage doctors’ back-office operations and represent them in negotiations with managed-care plans, usually under so-called capitated contracts.