Wednesday May 14 8:44 AM EDT
Company Press Release
Prime Medical Services Inc. announces acquisition of interest in Tennessee
lithotripter
AUSTIN, Texas--(BUSINESS WIRE)--May 14, 1997--Prime Medical Services Inc. (NASDAQ/NM:PMSI) announced
today that the company has acquired a 38.25 percent interest in Tenn-Ga Stone Group Two, L.P., which operates a mobile
lithotripter in Tennessee and Georgia.
The remaining 61.75 percent is owned primarily by area urologists. This lithotripter has been in operation since 1993 and
generates approximately $2.6 million in annual revenues. The purchase price for this interest was $3,470,000 in cash.
Dr. Joseph Jenkins, president, stated: ``This acquisition provides us with an opportunity to strengthen our network of
urologists in Tennessee and Georgia. The lithotripter unit performs approximately 1,000 procedures annually and serves
five hospitals located in the southeast corner of Tennessee and northwest corner of Georgia, areas where we previously
had a very limited presence.
``We currently operate six mobile lithotripters in Tennessee and Georgia.''
Ken Shifrin, chairman of the board, added, ``Although this is our first acquisition this year, we are holding active discussions
with several other doctor groups concerning both lithotripter acquisitions and new Prostatron(r) routes.''
Lithotripsy is a cost effective, non-invasive method for treating kidney stones through the use of extracorporeal shock
waves which pulverize kidney stones and permit them to pass painlessly from the body.
Prime Medical is the largest operator of lithotripters in the United States, currently treating over 34,000 patients annually,
through contracts with approximately 400 hospitals and 255 managed care companies. Prime Medical operates a fleet of 56
lithotripters in 32 states. Prime is developing mobile Prostatron(r) routes to provide services to hospitals and surgery
centers to treat benign prostatic hyperplasia (BPH). |
