Wednesday August 5, 8:31 am Eastern Time
Company Press Release
ProMedCo Further Expands Southwest Florida Presence Through Affiliation With 48-Physician Group
Accelerated Affiliation Activity Confirms the Value the Company Brings to Physician Groups
FORT WORTH, Texas--(BUSINESS WIRE)--Aug. 5, 1998--ProMedCo Management Company (Nasdaq/NM:PMCO - news) today announced that it has signed a letter of intent to affiliate with Medical Associates of Pinellas (Medical Associates), one of the largest multi-specialty groups located in Southwest Florida with 48 physicians and two extenders. The group, which is 77% primary care, operates in multiple locations throughout northern Pinellas and western Pasco 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, ''We are pleased to be announcing our fourth affiliation in Southwest Florida, expanding our network to approximately 170 affiliated providers, the largest network of physician groups in the area. Consistent with ProMedCo's affiliation strategy, Medical Associates operates in a non-urban area with favorable demographics. Although historically pre-managed care, this market has significant short-term global capitation opportunities. In a market that has a shortage of primary care physicians, Medical Associates' concentration of primary care physicians makes it a dominant force in the market and very attractive to payors.''
In closing, Mr. Posey said, ''We are encouraged by the growing interest among physicians in a relationship with ProMedCo. Given the recent turmoil in the physician practice management industry, ProMedCo has emerged as a stable, focused and disciplined physician partner. Because of this growing recognition, we continue to have a very strong pipeline. Medical Associates indicated that their choice of ProMedCo was largely based on ProMedCo's track record and success with similar groups across the country. We believe this is confirmation of the value and resources ProMedCo brings to affiliated groups.''
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