Advanced Health Declares Madison Medical Group-The Private Practice Group of New York, L.L.P. in Default of Management Services Agreement and Loan.TARRYTOWN Tarrytown (târ`ētoun), village (1990 pop. 10,739), Westchester co., SE N.Y., a residential suburb of New York City, on the E bank of the Hudson opposite Nyack; settled in the 17th cent. by the Dutch, inc. 1870. , N.Y.--(BUSINESS WIRE)--Dec. 9, 1998--Advanced Health Corporation (Nasdaq: ADVH) has notified Madison Medical Group - The Private Practice Group of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , L.L.P. (Madison Medical) that it is in default of a Promissory Note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. executed by Madison Medical in favor of upon the side of; favorable to; for the advantage of. See also: favor the Company because Madison Medical has failed to make payments to the Company totaling approximately $2.4 million, including accrued interest Accrued Interest The interest that has accumulated on a bond since the last interest payment up to but not including the settlement date. There are two methods for calculating accrued interest: 1) 360-day year method, used for corporate and municipal bonds. . In addition, Advanced Health has notified Madison Medical that it is in default of its Management Services Agreement for non-payment of approximately $1.8 million in fees during 1998. Advanced Health has provided management services to Madison Medical since December 1995. In 1997, Madison Medical accounted for approximately 17% of Advanced Health's gross revenues; for the nine months ended September 30, 1998, the practice accounted for approximately 15% of the Company's gross revenues. Advanced Health has continued to provide management services to the practice while attempting to collect past due monies. The Company said further action will be taken against Madison Medical if it does not promptly abide by its contractual obligations. No assurance can be given that the Company will collect the amounts owed to it by Madison Medical. Advanced Health participates in the growing healthcare electronic commerce market. The Company provides information technology enabling the electronic management of laboratory and prescription transactions. The Company is seeking to leverage its technology to become a leading provider of Internet-based electronic commerce among physicians and healthcare organizations. Through its professional outsourcing (1) Contracting with outside consultants, software houses or service bureaus to perform systems analysis, programming and datacenter operations. Contrast with insourcing. See netsourcing, ASP, SSP and facilities management. services unit, the Company also provides services to healthcare organizations, including physician practices. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion