Thursday July 30, 8:39 am Eastern Time
Company Press Release
ProMedCo Establishes Presence in Southern Maryland
Transaction Marks 13th State for Company
FORT WORTH, Texas--(BUSINESS WIRE)--July 30, 1998--ProMedCo Management Company (Nasdaq/NM:PMCO -
news) today announced that it has signed a letter of intent to affiliate with Shah Associates, a 32-physician multi-specialty group
located in southern Maryland, approximately 50 miles southeast of Washington, D.C. The group operates in multiple locations
throughout St. Marys and Calvert counties. Terms of the transaction were not announced, and it is subject to final physician
shareholder approval.
H. Wayne Posey, ProMedCo's president and chief executive officer, said, ''This transaction represents our initial entry into
Maryland and is consistent with our strategy of affiliating with leading physician groups in non-urban, pre-managed care
markets. We are particularly pleased to be establishing our presence in the Maryland market with a very prestigious and
well-respected group. Shah includes 43% of the physicians in the local marketplace. The group offers a full range of
multi-specialty services in a new comprehensive, state-of-the-art facility which Shah Associates opened within the last year.''
In commenting on the transaction, Dr. V. K. Shah, president of Shah Associates, stated, ''In keeping with the challenges of the
next millennium, physicians must be proactive in developing an infrastructure of facilities and management at a much higher level
than that ever required in the past. In searching for the right partner, we looked at several options, from a large tertiary care
hospital to local institutions and management companies. We were most impressed with ProMedCo, particularly with their
flexibility, their desire to work with physicians, and their vision to bring sophisticated medicine into a smaller community.''
Mr. Posey added, ''We are very pleased that, despite recent concerns regarding the physician practice management industry,
ProMedCo continues to be successful in its affiliation efforts. In addition, we believe that transactions with groups of the caliber
of Shah Associates demonstrate that highly successful practices can still benefit from the services provided by physician
practice management companies such as ProMedCo.''
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. |
