Doug,
I just came across this article/news release. I hope this doesn't spell trouble.
Take care,
Kurt
Monday July 6, 7:21 pm Eastern Time
Company Press Release
FPA To Close Thomas-Davis Medical Centers' Facilities in Phoenix, Tucson As
Part of Strategic Plan
SAN DIEGO--(BUSINESS WIRE)--July 6, 1998--FPA Medical Management, Inc. (NASDAQ:FPAM - news) announced today that, as part of
its recently announced strategic plan, it will be closing the Thomas-Davis Medical Centers in Tucson and Phoenix effective August 31. The
Thomas-Davis Medical Centers have 15 facilities and approximately 800 employees in Phoenix and Tucson.
Late last month, FPA announced that it was in the process of developing a one year strategic plan to preserve key markets within its provider
network and is in third-party discussions for the orderly exit and transition from non-core markets. FPA said it will be working to help ensure
continuity of care for all of the patients of these facilities.
Separately, FPA said that discussions are continuing with FPA's banks and strategic investors regarding a consensual restructuring of FPA's
businesses and balance sheet. The Company said that it still expects to complete these discussions during the summer.
This Press Release contains statements which constitute ''forward-looking statements'' within the meaning of the Securities Act of 1933 and the
Securities Exchange Act of 1934, as amended by the Private Litigation Reform Act of 1995. ''Forward-looking statements'' in this Press Release
include the intent, belief, or current expectations of the Company and members of its senior management team with respect to the timing of
completion of and scope of the current strategic business plan, bank financing, and the public or private offering of debt and/or equity securities,
debt and equity market conditions and the Company's future liquidity, as well as the assumptions upon which such statements are based. While
the Company believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations,
prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and involve risks and
uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently
known to management that could cause actual results to differ materially from those contemplated by the forward-looking statements in this Press
Release include, but are not limited to, further adverse developments with respect to the Company's liquidity, position, or operations of the
Company's various businesses, adverse developments in the Company's efforts to renegotiate its funding and adverse developments in the bank
financing or public or private markets for debt or equity securities, or adverse developments in the timing or results of the Company's current
strategic business plan, the difficulty in controlling health care costs and integrating new operations, the ability of the Company to realize the
anticipated general and administrative expense savings and overhead reductions presently contemplated, the ability of the Company to return the
Company's operations to profitability, the level and nature of any restructuring and other one-time charges, the difficulty in estimating costs
relating to exiting certain markets and consolidating and closing certain operations, and the possible negative effects of prospective health care
reform. Additional factors that would cause actual results to differ materially from those contemplated within this Press Release can also be found
in the Company's Form 10-Q for the quarter ended March 31, 1998 and the Company's Form 10-K for the year ended December 31, 1997.
Contact:
Sitrick And Company
Michael Sitrick or Steven Seiler, 310/788-2850
John Grimaldi, 212/755-2850 |
