Advanced Health Changes Name to AHT Corporation to Reflect its Focus on Internet-Based E-Commerce
Retains Hambrecht & Quist to Explore Strategic Alternatives For
Outsourcing Services Unit
Jeffrey Sauerhoff Appointed CFORRYTOWN, N.Y., Jan. 13 /PRNewswire/ --
Advanced Health Corporation (Nasdaq: ADVH) announced today important strategic moves to better position the Company in the high-growth healthcare e-commerce industry.
Name Change and New Ticker Symbol
"Our goal," Jon Edelson, MD, Chairman and CEO, stated, "is to leverage our capabilities in the electronic management of laboratory and prescription transactions to become a leading provider of Internet- based clinical e-commerce among physicians and healthcare
organizations." Consistent with this goal, Dr. Edelson said the Company is changing the name under which it will conduct business to AHT Corporation. The name change, along with a new Nasdaq stock symbol, AHTC, will become effective on Monday, February 1, 1999. The name change and new stock symbol will be introduced to the marketplace through advertisements in The Wall Street Journal and other business press.
"Management believes that the Company has the opportunity to compete for an increasing share of the clinical e-commerce market for laboratory and prescription transactions, which we estimate has the potential to become a $2 billion industry," Dr. Edelson said.
"Healthcare companies are aggressively seeking electronic connectivity to physician offices where medical orders originate. We believe our commercialized products, our more than 100 information system interfaces, our distribution relationships and our growing
national customer base position us to compete as a leading player in this market."
Outsourcing Services Unit
Dr. Edelson announced the Company retained investment bank Hambrecht & Quist to
explore strategic alternatives for the Company's outsourcing services unit, which provides
management and consulting services to healthcare organizations, including hospital-based
and physician group practices. "Although our outsourcing services unit has grown to
support over 30 network and physician group clients, this business is no longer core to our
strategy of focusing on healthcare e-commerce. Therefore," Dr. Edelson added, "we are
working closely with Hambrecht & Quist to explore strategic alternatives for this unit."
Management and Board Changes
Dr. Edelson also announced that Alan Masarek, President and Chief Operating Officer
and Director, will resign his operating post and Board position effective March 31, 1999.
Until then, Mr. Masarek will remain with the Company to explore strategic alternatives for
its outsourcing services unit. Effective March 31, 1999, Dr. Edelson will assume the
additional role of President.
Dr. Edelson said Rob Alger, Chief Information Officer and Executive Vice President, has
been elected to the Board of Directors to fill the vacancy created by Mr. Masarek's
resignation. Mr. Alger, who will join the Board effective March 31, 1999, has been with
the Company since 1995. Prior to joining the Company, Mr. Alger was Chief Information
Officer and Vice President of Information Systems at Blue Shield of California. He also
served as Chairman of the National Health Foundation's Health Data Interchange Project,
which led to the development of California's community health information network for
both administrative and clinical transactions. Dr. Edelson stated the Board is
searching for up to two additional outside Directors whose strengths and
expertise include healthcare and information technology.
Additionally, Dr. Edelson announced that the Board appointed Jeffrey Sauerhoff to the
post of Chief Financial Officer. Mr. Sauerhoff, formerly Senior Vice President, Finance,
has been with the Company since 1995. Prior to joining the Company, he served as Chief
Financial Officer at three companies: Preferred Solutions, a pharmacy benefit
management company; East Nassau-Suffolk Region, an affiliate of HIP, a health
insurance company; and Erisco, Inc., a wholly-owned subsidiary of the Dun & Bradstreet
Corporation. Mr. Sauerhoff will report to Dr. Edelson.
"We believe the measures of our success in 1999 will be achieving additional milestones
relating to customers, distribution channels and physician site installations," Dr. Edelson
said. "Each of these new milestones will bring us one step closer to achieving our goal of
becoming a leading provider of clinical e-commerce among physicians and healthcare
organizations."
AHT Corporation, which becomes the new name under which the Company will do
business effective February 1, 1999, participates in the growing healthcare e-commerce
market. The Company provides information technology enabling the electronic
management of laboratory and prescription transactions. The Company's goal is to
become a leading provider of Internet-based clinical e-commerce among
physicians and healthcare organizations.
For more information, please visit AHT's web site at
This press release contains forward-looking information. The forward-looking statements
are made pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements, including statements as to industry
trends, future economic performance, anticipated profitability, anticipated revenues and
expenses, and products or service line growth, may be significantly impacted by certain
risks and uncertainties, including but not limited to, failure to meet operating objectives or
to execute the operating plan, failure to successfully restructure the Company's business
units, competition and other economic factors. No assurances can be given as to the
outcome of any pending lawsuits against the Company. Additional risks and uncertainties
are described in the Company's public filings with the Securities and Exchange
Commission.
SOURCE Advanced Health Corporation |
