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Biotech / Medical : FPA Medical Management - FPAMQ -- Ignore unavailable to you. Want to Upgrade?

To: Ben Beale who wrote (932)	7/17/1998 1:26:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 1110

Ben, My guess is that a SEC enforcement action against former management, if if occurred, would have no effect on the stock price since they are no longer are in a position to control the company's operations.... And yes, I've acquired a few shares of FPAM, ha! I've never seen a stock in trouble of its revenue stream size completely "crash and burn." Now it might happen, but I'll play the averages here and bet that FPAM survives, and then later thrives.... Also this is the last thing I heard on FPAM's East Coast operations- things seem to be quiet there. Have you heard anything? FPA Medical Management, Inc. Enters Into Definitive Agreements With Humana to Add 90,000 HMO Members in Florida and Kansas City Business Wire - May 29, 1998 13:19 SAN DIEGO--(BUSINESS WIRE)--May 29, 1998-- FPA Medical Management, Inc. (Nasdaq: FPAM) announced today that it entered into definitive agreements with Humana Inc. pursuant to which FPA will begin June 1, 1998 to operate 21 health centers in four markets and provide health care services to approximately 90,000 Humana members under a ten-year provider agreement. Under FPA's operation, the health care centers which previously served Humana members only will now provide services to multiple HMOs. "This agreement demonstrates Humana's confidence in FPA's abilities to provide quality health care to their patients. We appreciate Humana's demonstration of continuing support of FPA at this time," stated Stephen J. Dresnick, MD, FACEP, FPA's President and Chief Executive Officer. "The transaction with Humana is expected to add approximately $100 million in revenue for the balance of 1998. More importantly, this business is expected to be cash flow positive immediately. FPA expects to consolidate six existing FPA centers into the new Humana centers. As previously announced, this transaction requires no initial capital investment by FPA," Dresnick added. "Health centers such as the ones FPA will now operate can deliver their services most effectively as an integrated part of a medical delivery system that is expressly focused on direct patient care," said Gregory H. Wolf, Humana's President and Chief Executive Officer. "FPA has substantial experience in providing care in partnership with multiple payors. Humana, by contrast, is focused on health insurance and related services." Humana Inc., headquartered in Louisville, Kentucky, is one of the nation's largest publicly traded managed health care companies with approximately 6.2 million medical members located primarily in 16 states and Puerto Rico. Humana offers coordinated health care through a variety of plans -- health maintenance organizations, preferred provider organizations, point-of-service plans, and administrative services products -- to employer groups, government-sponsored plans and individuals. FPA Medical Management, Inc. is a national physician practice management organization that organizes and manages primary care physician networks to contract with HMOs and other prepaid insurance plans to provide physician and related health care services and provides contract management support services to hospital emergency departments. Certain statements contained in this release constitute forward-looking statements contemplated under the Private Securities Litigation Reform Act of 1995. Although FPA Medical Management, Inc. believes that its expectations are based on reasonable assumptions within the bounds of its knowledge of its business and operations, there can be no assurance that actual results will not differ materially from their expectations. Factors that could cause actual results to differ from expectations include the difficulty in controlling health care costs and integrating new operations, the ability of the Company to secure financing for operations and acquisitions on reasonable terms, the ability of the Company to realize the anticipated general and administrative expense savings and overhead reductions, the ability of the Company to return the Company's operations to profitability, the level and nature of the restructuring and other one-time charges, the difficulty in estimating costs relating to exiting certain markets and consolidating and closing certain operations and the possible negative effects of prospective health care reform. For other important factors that may cause actual results to differ materially from expectations and underlying assumptions, see reports by FPA Medical Management, Inc. filed with the Securities and Exchange Commission. CONTACT: FPA Medical Management, Inc. Dr. Stephen J. Dresnick President and Chief Executive Officer, 305/FPA-3767 Sincerely, Doug F. PS- FPAM up 1/16th in thin after hours trading- whoop de da!