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Thursday December 4, 8:30 am Eastern Time
Company Press Release
Promedco Announces Completion Of Acquisition Of Health Plans, Inc.
FORT WORTH, Texas--(BUSINESS WIRE)--Dec. 4, 1997--ProMedCo Management Company (Nasdaq/NM:PMCO -
news) today announced the completion of its acquisition of Portland, Maine-based Health Plans, Inc., which provides
state-of-the-art capitation management services through risk contracting with third-party payors. The acquisition expands
operations to two new states, significantly expands the scope of the Company's services and enhances its marketing efforts.
ProMedCo had been providing management consulting services to Health Plans under a consulting services agreement since
June 1997. Terms of the transaction were not disclosed.
Currently, Health Plans provides services which cover approximately 30,000 capitated lives, and it manages a network of 240
physicians and several hospitals in the Maine and New Hampshire area. It was the first primary care affiliated physician
organization to accept global capitation in the Northeast and has assembled an outstanding management team with significant
experience in securing and managing risk contracts.
H. Wayne Posey, ProMedCo's president and chief executive officer, said, ''The inevitable penetration of managed care in our
existing and prospective markets creates a major business opportunity for our company as we prepare our medical groups for
the assumption of risk. The acquisition of Health Plans facilitates our move into the managed care arena without diluting
ProMedCo's earnings, while also opening new geographic markets and creating a strong inducement for medical groups to
affiliate with our company. This acquisition expands our infrastructure, giving us state-of-the-art capitation management
services. These services include clinical quality assessment, information systems, enrollment and patient registration, capitation
processing and payment, utilization management, and case management.''
This press release contains ''forward-looking statements'' which are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. The forward-looking statements are based on current expectations and may be
significantly impacted by certain risks and uncertainties, some of which are described in the Company's S-1 Registration
Statement and Prospectus filed with the Securities and Exchange Commission on March 12, 1997. There can be no assurance
that statements made in this press release relating to future events will be achieved.
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
More Quotes and News:
ProMedCo Management Co (Nasdaq:PMCO - news)
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