Tuesday December 8, 7:30 am Eastern Time
Company Press Release
SOURCE: Comprehensive Care Corp.
Comprehensive Care Announces Definitive Agreements to Sell Two Hospitals
TAMPA, Fla., Dec. 8 /PRNewswire/ -- Comprehensive Care Corp. (NYSE: CMP - news) today announced definitive agreements to sell the two remaining hospitals it owns, thus completing its transition to becoming solely a managed care company serving government agencies and managed care organizations. The Company currently has managed care contracts covering approximately 1.5 million lives for private insurance carriers, health maintenance organizations and state agencies. The sale of the Trinity Oaks Hospital facility located in Fort Worth, Texas, and the Aurora Behavioral Health facility located in Aurora, Colorado, will, upon closing, provide approximately $7 million for working capital.
According to the Company, the Fort Worth facility, which is presently closed, is in escrow to be sold to the Fort Worth Independent School District for an all cash purchase price of approximately $1,990,000. The Company anticipates the sale of this facility to be completed on or about December 15, 1998.
The Aurora facility is to be sold to Jefferson Hills Corporation, a non-profit entity based in Colorado. The purchase price is estimated at $5.1 million and is payable in cash upon closing. The Aurora closing is expected to occur on or before January 31, 1999 and is subject to certain conditions including the purchaser's ability to obtain financing to complete the transaction.
Comprehensive Care, based in Tampa, Florida, administers and operates behavioral healthcare programs for government agencies and managed care organizations. The Company currently has contracts covering approximately 1.5 million healthcare organization members and Medicaid recipients, and has a network of about 10,000 practitioners.
''Safe Harbor'' statement under the Private Securities Litigation Reform Act of 1995: Except for historical information, the matters discussed in this news release that may be considered forward-looking statements may be subject to certain risks and uncertainties that could cause the actual results to differ materially from those projected, including uncertainties in the market, pricing, competition, procurement efficiencies, and other risks detailed from time to time in the company's SEC reports. The company assumes no obligation to update the information in this release.
SOURCE: Comprehensive Care Corp.
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