Humana Agrees to Buy Physician Corp.

Louisville, Ky.-based Humana Inc. agreed to buy Physician Corp. of America for $400 million in cash and assumed debt to expand its business in Florida and Texas. Humana, one of the largest operators of managed-care health plans, said it will pay $270 million in cash, or $7 a share, and assume $130 million of debt for Miami-based PCA. The move would add about 1.14 million people to the 4.77 million covered under Humana plans and comes amid a reorganization at Humana. Shares of PCA rose 37.5 cents to close at $6.625 on Nasdaq, while Humana rose 62.5 cents to close at $23.875 on the New York Stock Exchange.