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From : PR Newswire Jan 13 1999 7:31AM
Re : Advanced Health Changes Name to AHT Corporation to Reflect its Focus on Internet-Based E-Commerce
Wednesday January 13, 07:31 AM Eastern time
Company Press Release
SOURCE:Advanced Health Corporation
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
Alan Masarek, President, to Resign
Jeffrey Sauerhoff Appointed CFO
TARRYTOWN, 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.
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Contact:
Arthur Dague of Advanced Health Corporation, 914-524-4783, or
adague@ahtec.com
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