Monday August 18 8:30 AM EDT
Company Press Release
Prime Medical Services, Inc. Expands into Rapidly Growing
and Generally Untapped Prostate Market With Formation of
North Carolina Venture
AUSTIN, Texas--(BW HealthWire)--Aug. 18. 1997--Prime Medical Services, Inc. (``Prime'')
(Nasdaq/NM:PMSI) announced the formation of its first partnership to provide thermotherapy
services for the treatment of benign prostatic hyperplasia (``BPH'') to hospitals and surgery centers
in North Carolina.
BPH is the non-cancerous enlargement of the prostate which restricts the urethra, thus making
voiding difficult, and typically beginning to appear in men in their 50's and negatively impacting
the quality of life of most men by the time they are 65. Symptoms associated with BPH affect the
quality of life of an estimated 7.5 million men in the United States. As a result of the aging
population, the number of men suffering moderate to severe symptoms of BPH is expected to
double in in the United States by the year 2020. Despite the fact that only a small portion of
sufferers currently seek treatment, BPH related expenditures in the United States are estimated to
be $5 billion annually. Importantly, thermotherapy relieves the symptoms of BPH, without
incurring the risks of complications often associated with surgery and other more invasive
procedures.
Prime, through its wholly owned subsidiary Prostatherapies, Inc., will own a 27% general partner
interest in North Carolina Prostatherapy Limited Partnership I (``North Carolina I''). The
remaining 73% interest will be owned by Carolina Lithotripsy (57%) and 26 individual urologists
(16%). Carolina Lithotripsy is a North Carolina limited partnership made up of 49 urologist
partners. Prime will serve as the management company for North Carolina I.
North Carolina I will operate a Prostatron(R) mobile system servicing various locations in eastern
North Carolina. Dan A. Myers, M.D., senior vice president of development of Prime, was recently
elected President of Prostatherapies, Inc. Dr. Myers is one of the key urologists involved in the
development of many of Prime's lithotripter routes.
Joseph Jenkins, M.D., president, stated, ``We are excited about the opportunity this new technology
has given us to expand our product line and provide a significant benefit to the patients of our
urologist partners. We have had long-term relationships with most of our urologist partners in
North Carolina I through our current lithotripter operation and look forward to enhancing these
relationships through the provision of Prostatron(R) services.''
Dr. Myers, President of Prostatherapies, Inc., added, ``We expect to begin operations in North
Carolina by October 1997. Additional thermotherapy operations are being developed in other areas
of the country, which should result in our having a total of three units in operation by year end
1997. With our network of over 25% of the nation's urologists, we believe we have a tremendous
platform with which to develop this line of business.''
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
performing over 36,000 procedures annually, through contracts with approximately 400 hospitals
and 255 managed care companies. Prime Medical operates a fleet of 58 lithotripters in 33 states.
Prime is also developing mobile routes to provide thermotherapy services to hospitals and surgery
centers to treat benign prostatic hyperplasia (BPH).
For more information, visit Prime's website at: www.primemedical.com . |
