GOOD NEWS:
Friday July 24, 8:31 am Eastern Time
Company Press Release
ProMedCo Announces Major Transaction in Southwest Florida With 47 Providers
Company Now Operates Largest Network of Group Practice Physicians in This Expanding Region
FORT WORTH, Texas--(BUSINESS WIRE)--July 24, 1998-- ProMedCo Management Company (Nasdaq/NM:PMCO - news) today announced that it has entered into a letter of intent to acquire the assets of Physicians Primary Care of Southwest Florida, a 47-provider group which is the largest independent practice in Lee County (Ft. Myers). The group operates out of eight locations throughout the region. Terms of the transaction were not announced, and it is subject to physician shareholder approval.
This affiliation with 39 physicians and 8 extenders complements other existing ProMedCo groups which operate just south in Naples, Florida, and immediately north in Sarasota, Florida. Taken collectively, the Company now operates the largest network of group practice physicians in Southwest Florida with approximately 110 providers.
Commenting on the transaction, Lawrence Antonucci, M.D., M.B.A, chief executive officer of Physicians Primary Care of Southwest Florida, said, ''Despite recent concerns regarding the physician practice management industry, it became obvious to us that ProMedCo is a long-term, viable partner that adds unique resources and experience to its affiliated medical groups. We believe ProMedCo will be instrumental in our goal of becoming the preeminent primary care group in the Lee County area, and we look forward to working with them.''
H. Wayne Posey, ProMedCo's president and chief executive officer, said, ''Physicians Primary Care is a dominant group with strong physician leadership in one of the fastest growing areas of the country. This transaction, along with the continuing strength of our pipeline, highlights the fact that the fundamentals of the industry are still very compelling. Physicians continue to recognize the need for resources that focused, well managed physician management companies can deliver.''
Mr. Posey added, ''In addition, this affiliation in Florida demonstrates the success we are having in developing momentum in our various markets. Once we enter a market, such as Southwest Florida, other physicians become motivated to affiliate with our company. This transaction exemplifies our ability to achieve a very strong market presence which is driven by our exclusive focus on secondary markets.''
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 described herein and in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended December 31, 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.
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