AmeriPath Announces Increased Malpractice Costs and Comments On Medicare Proposal For 2003.Business Editors/Health & Medical Writers AmeriPath, Inc. (Nasdaq:PATH), a leading national provider of cancer diagnostics, genomics, and related information services, today announced that it has renewed its medical malpractice coverage for the policy year effective July 1, 2002 to June 30, 2003. Despite an excellent claims history, the Company encountered a severe malpractice environment resulting in an annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. renewal rate in excess of budget by $6 to $8 million. As a result, the Company anticipates the balance of 2002 to be negatively impacted by $.03 to $.04 per quarter for the remaining two quarters of 2002. "This premium increase is a function of market conditions and not a result of abnormal loss experience at AmeriPath," said James C. New, Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "Malpractice insurance has been a well-publicized problem in healthcare, in fact, it is becoming financially paralyzing in many sectors. We believe some type of government reform will be necessary before the market experiences a return to acceptable levels." Medicare Proposal AmeriPath is disappointed by the Department of Health and Human Services' proposed revisions to Medicare payment under the physician fee schedule for calendar year 2003. These proposals are subject to comment and, in the Company's experience, there can be differences between proposed and final fee schedules, which are normally published in November. Also, there is existing legislation in Congress, which will minimize the proposal's impact. AmeriPath will work with the College of American Pathologists This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (CAP) to provide feedback on the proposed rates. Should rates be implemented per the Center for Medicare and Medicaid Medicare and Medicaid U.S. government programs in effect since 1966. Medicare covers most people 65 or older and those with long-term disabilities. Part A, a hospital insurance plan, also pays for home health visits and hospice care. Services (CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. ) proposed schedule, AmeriPath would experience up to a $10 million revenue reduction. If the House Ways and Means WAYS AND MEANS. In legislative assemblies there is usually appointed a committee whose duties are to inquire into, and propose to the house, the ways and means to be adopted to raise funds for the use of the government. This body is called the committee of ways and means. recommendation of 2% increase in the conversion factor is adopted, the negative revenue impact would be reduced to $3 million. The Company believes the smaller number is the most likely. The Company will provide '03 guidance at the end of July on its quarterly conference call. AmeriPath will hold a conference call on Tuesday, July 2, 2002 at 10:00 a.m. Eastern Time. This conference call will offer an audio broadcast live on the Internet and can be accessed at http://www.corporate-ir.net/ireye/ir_site.zhtml?ticker=PATH&script=1020&item_id=ew,644773,1&layout=6 (Due to the length of this URL URL in full Uniform Resource Locator Address of a resource on the Internet. The resource can be any type of file stored on a server, such as a Web page, a text file, a graphics file, or an application program. , it may be necessary to copy and paste To copy files from one location to another or to copy text and images from one document to another. All modern operating systems and applications have a copy and paste capability that is typically selected from an Edit menu. See cut and paste and Win Copy between windows. this hyperlink into your Internet browser's URL address field.) or at the Company's website, http://www.ameripath.com. A playback of the call will be available from 12:00 p.m. July 2 to 12:00 p.m. July 4. PostView dial-in number of the telephone replay is 800-633-8284, ID #20734071. AmeriPath is a leading national provider of cancer diagnostics, genomics, and related information services. The Company's extensive diagnostics infrastructure includes the Center for Advanced Diagnostics (CAD), a division of AmeriPath. CAD provides specialized diagnostic testing and information services including Fluorescence In-Situ Hybridization hybridization /hy·brid·iza·tion/ (hi?brid-i-za´shun) 1. crossbreeding; the act or process of producing hybrids. 2. molecular hybridization 3. (FISH), Flow Cytometry, DNA Analysis, Polymerase Chain Reaction polymerase chain reaction (pŏl`ĭmərās') (PCR), laboratory process in which a particular DNA segment from a mixture of DNA chains is rapidly replicated, producing a large, readily analyzed sample of a piece of DNA; the process is (PCR PCR polymerase chain reaction. PCR abbr. polymerase chain reaction Polymerase chain reaction (PCR) ), Molecular Genetics, Cytogenetics cytogenetics /cy·to·ge·net·ics/ (-je-net´iks) the branch of genetics devoted to cellular constituents concerned in heredity, i.e. chromosomes. and HPV HPV human papillomavirus. HPV abbr. human papilloma virus Human papilloma virus (HPV) Typing. Additionally, AmeriPath provides clinical trial and research development support to firms involved in developing new cancer and genomic diagnostics and therapeutics. The statements contained in this press release include "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements - which are sometimes identified by words such as "may", "should", "believe", "expect", "anticipate", "estimate" and similar expressions and which include any financial or operating estimates, forecasts or projections - are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control. These risks and uncertainties could cause actual results to differ materially from results anticipated by forward-looking statements. These risks and uncertainties include: the extent of success of the Company's operating initiatives and growth strategies; ability to manage growth; access to capital on satisfactory terms; general economic conditions; terrorism or an escalation of hostilities or war; competition and changes in competitive factors; federal and state healthcare regulation (and compliance); reimbursement rates under government and third party healthcare programs and the payments received under such programs; changes in coding; changes in technology; dependence upon pathologists and customer contracts; the ability to attract, motivate, and retain pathologists; labor, technology and insurance costs; marketing and promotional efforts; the availability of pathology practices in appropriate locations that the Company is able to acquire on suitable terms or develop; and the successful completion and integration of acquisitions (and achievement of planned or expected synergies). The forward-looking statements in this press release are made as of the date hereof based on management's current beliefs and expectations, and the Company undertakes no obligation to update or revise any such statements. Further information regarding risks, uncertainties and other factors that could affect the Company's financial or operating results or that could cause actual results to differ materially from those expected, estimated or anticipated are included in the Company's annual, quarterly, and other reports and filings with the SEC. Editor's Note: This release is also available at http://www.ameripath.com |
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