Monday August 31, 8:33 am Eastern Time
Company Press Release
OptimumCare Launches Las Vegas Partial Hospitalization Program And Announces New Initiatives For Growth
LAGUNA NIGUEL, Calif.--(BW HealthWire)--Aug. 31, 1998-- OptimumCare Corp. (OTC/BB:OPMC - news) Monday entered the Nevada market by opening a partial hospitalization program in Las Vegas. It also said it would open a similar site in Portland, Ore., by year end, and announced up to 18 additional programs by 2001 in the Western United States.
''OptimumCare's goal is to launch four to six programs in each of the next three years,'' said its chairman and chief executive officer, Ed Johnson, in announcing the company's new and expanded growth strategy. He noted that, when fully implemented, the company's projected revenue, based on current revenue levels and with nearly 30 sites operational, could exceed $25 million to $30 million annually.
Since its inception, OptimumCare has traditionally provided behavioral health care services through a network of hospitals and community mental health centers. Through a contracted relationship, it typically partners with host facilities that meet and maintain regulatory guidelines, and obtain ''provider numbers'' that are necessary in order to operate a behavioral health program.
Johnson noted that anticipated changes in reimbursement -\026 from fee for service to a prospective payment system -\026 are expected to revolutionize the behavioral healthcare arena. He said OptimumCare welcomed such changes, and has strategically positioned itself to benefit from direct reimbursement for its services, which will also be more cost effective for the consumer and the government.
''A key feature of our new direction is our expanded alternatives, and how we've positioned the company to grow and prosper no matter what changes may occur in the healthcare environment. Now, in addition to partnering under contract with a host facility, we plan to open programs with our own provider numbers,'' he added.
''To date, OptimumCare has not operated any program under its own provider number; instead, it has contracted with partners and is reimbursed, through them, for its services. This newest program in Las Vegas is the first under which we will operate with our own provider number,'' Johnson said.
In addition, OptimumCare has already begun the provider number application process on two other existing programs, and plans are underway for additional applications that will allow it to open new programs unilaterally.
''Our primary focus has always been the delivery of the highest quality of care for the patients we serve,'' said Mulu Michael, OptimumCare\022s president and chief operating officer. ''We plan to expand our reach with new programs in communities that need our assistance. Our goal is to improve the daily quality of life for our patients by teaching them how to care for their own needs and contribute to the community.''
Created in 1987 to respond to opportunities presented by increasing utilization of behavioral health services, OptimumCare Corp. provides a wide range of inpatient and outpatient behavioral health services through a network of affiliated hospitals, medical centers and community health centers.
Certain of the statements made herein constitute forward looking statements that involve risks and uncertainties, including the risks associated with plans, the effects of changing economic and competitive conditions, government regulation which may affect facilities, licensing, healthcare reform which may affect payment amounts and timing, availability of sufficient working capital, program development efforts and timing, and market acceptance of new programs which may effect future sales growth and/or costs of operations. Additional information may be obtained by reviewing the company\022s reports filed from time to time with the SEC.
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