AMERICAN HEALTHCORP'S DIABETES TREATMENT CENTERS OF AMERICA SUBSIDIARY SIGNS COMPREHENSIVE HEALTHCARE MANAGEMENT CONTRACT COVERING 65,000 LIVES WITH A UNIT OF BLUE CROSS AND BLUE SHIELD OF FLORIDA.NASHVILLE, Tenn.--(BUSINESS WIRE)--June 20, 1996--Thomas G. Cigarran, Chairman and Chief Executive Officer of American Healthcorp, Inc. (Nasdaq/NM:AMHC AMHC Association of Mental Health Clergy AMHC Aviation Structural Mechanic Hydraulics Chief ), today announced that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Diabetes Treatment Centers of America (DTCA DTCA Direct-To-Consumer Advertising DTCA Dwell-Time Code Acquisition DTCA Defect-Tolerant Computer Architecture ), has signed a five-year, comprehensive healthcare management services contract for people with diabetes with Health Options, Inc., an HMO HMO health maintenance organization. HMO n. A corporation that is financed by insurance premiums and has member physicians and professional staff who provide curative and preventive medicine within certain financial, subsidiary of Blue Cross and Blue Shield of Florida Blue Cross and Blue Shield of Florida is Florida's largest health insurance provider and plan administrator. The company is a member of Blue Cross and Blue Shield Association. The nonprofit, Jacksonville-based Blue Cross and its subsidiaries serve more than 8. ("BCBSF BCBSF Blue Cross/Blue Shield of Florida "). The contract covers Health Options' enrollees in BCBSF's central Florida
Central Florida is the central region of the United States state of Florida, on the East Coast. region. Covering Orlando and seven surrounding counties, Health Options currently has approximately 65,000 members in central Florida, including an estimated 1,800 to 2,000 people with diabetes. Blue Cross and Blue Shield of Florida is the largest and most prestigious health insurance company in the state of Florida with over 2,000,000 covered lives in HMO, PPO PPO abbr. preferred provider organization PPO Managed care Preferred provider organization, see there Infectious disease Pleuropneumonia-like organism, see there and indemnity plans statewide. Mr. Cigarran remarked, "We are very pleased to announce this contract with Health Options. This contract provides support to Health Options' network of physicians, hospitals and other providers in the central region for the long-term, comprehensive healthcare management of its enrollees with diabetes. This contract reflects the growing interest among managed care organizations, large employers and other at-risk healthcare organizations in providing people with diabetes with better care and improved outcomes and reducing the inordinate healthcare expenses that these people usually experience compared to people without diabetes. It also reinforces DTCA's leadership position in the diabetes services business. "DTCA is well positioned financially to implement and manage this contract, and its management team for the contract is in place. We continue to be engaged in discussions regarding similar contracts with other organizations, and we expect this announcement to provide further momentum to those conversations. As a result, we expect to make additional announcements about new contracts in the months ahead." The contract with Health Options has an initial term of five years. DTCA anticipates that its contract revenues will be more heavily weighted toward the later years of the contract's initial term and that, during the first year of operation, revenues will be slightly less than operating costs. Implementation of the Health Options contract will begin in July 1996. This press release contains forward-looking statements which are based upon current expectations and involve a number of risks and uncertainties. To take advantage of the new "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995, you are hereby cautioned that these statements may be affected by the important factors, among others, set forth below, and, consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. The important factors include: the number of patients in the plan during the term of the contract; DTCA's ability to effect estimated cost savings or to effect such savings within the time frames contemplated by DTCA; unusual and unforeseen patterns of healthcare utilization by individuals with diabetes in the plan ; the ability of the plan to maintain the number of covered lives enrolled in these plans; and DTCA's ability to attract and/or retain and effectively manage the employees required to implement the contract. American Healthcorp, Inc., through its wholly owned subsidiary, Diabetes Treatment Centers of America, Inc., is the nation's leading provider of specialized services for people with diabetes. Through its majority ownership of AmSurg Corp., the Company also develops, acquires and manages physician practice-based ambulatory surgery centers ambulatory surgery center A free-standing center that performs various types of surgery and specialty physician networks in partnership with surgical and other group practices. The Company wholly owns ArthritisCare Centers of America, which operates two comprehensive treatment centers for individuals with arthritis. CONTACT: American Healthcorp, Inc., Nashville Henry D. Herr, 615/665-1122 |
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