NEWS ALERT!
ednesday October 1 12:22 PM EDT
Company Press Release
PROMEDCO ANNOUNCES COMPLETION OF
TRANSACTION WITH BEACON MEDICAL GROUP
FORT WORTH, Texas--(BUSINESS WIRE)--Oct. 1, 1997--ProMedCo Management Company
(Nasdaq/NM:PMCO) today announced that it had completed its previously announced transaction
with HealthAmerica, a subsidiary of Coventry Corporation (Nasdaq/NM:CVTY), in which
ProMedCo acquired certain assets of Beacon Medical Group (Beacon) and entered into a
long-term service agreement with the group. As previously announced, the Company had been
managing the practice under an interim service agreement effective April 1, 1997. Under the terms of
the transaction, HealthAmerica, which has 260,000 members in this region, also entered into a
long-term global capitation agreement with ProMedCo covering approximately 12,000 members
who have selected Beacon as their provider. Other terms were not disclosed.
H. Wayne Posey, ProMedCo's president and chief executive officer, said, ``This transaction
represents a milestone for ProMedCo in several ways. We enter the Pennsylvania marketplace, we
accelerate our entry into global capitation, and the transaction represents a sector of healthcare
where we see significant future potential as managed care companies continue to divest proprietary
medical groups. Portland, Maine-based Health Plans, Inc., which will become ProMedCo's
managed care subsidiary upon final regulatory approval, provides the necessary infrastructure and
management for this global capitation agreement.''
ProMedCo, headquartered in Fort Worth, Texas, is a physician practice management company.
ProMedCo's focus is to facilitate the consolidation of physician groups into primary care-driven,
multi- specialty networks. The Company provides expertise in managed care, access to capital,
information systems and experienced management.
Contact:
ProMedCo, Fort Worth
H. Wayne Posey, 817/335-5035 |
