Dear x fpamm emp:
Actually, far from being dropped by medical groups "like a hot potato," FPAM has been adding contracts.
I will remind you of an event of less than six weeks ago, which may have slipped your attention.
SAN DIEGO--(BUSINESS WIRE)--May 29, 1998-- FPA Medical Management, Inc. (NASDAQ:FPAM) announced today that it entered into definitive agreements with Humana Inc. pursuant to which FPA will begin June 1, 1998 to operate 21 health centers in four markets and provide health care services to approximately 90,000 Humana members under a ten-year provider agreement. Under FPA's operation, the health care centers which previously served Humana members only will now provide services to multiple HMOs.
"This agreement demonstrates Humana's confidence in FPA's abilities to provide quality health care to their patients. We appreciate Humana's demonstration of continuing support of FPA at this time," stated Stephen J. Dresnick, MD, FACEP, FPA's President and Chief Executive Officer.
"The transaction with Humana is expected to add approximately $100 million in revenue for the balance of 1998. More importantly, this business is expected to be cash flow positive immediately. FPA expects to consolidate six existing FPA centers into the new Humana centers. As previously announced, this transaction requires no initial capital investment by FPA," Dresnick added.
Happy Investing!
Vanni |
