America Service Group Inc. Acquires Assets of Correctional Physician Services, Inc.Business Editors, Health/Medical Writers NASHVILLE, Tenn.--(BW HealthWire)--March 29, 2000 America Service Group Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ASGR ASGR America Service Group Inc. ASGR Armed Services Graves Registration Office ) today announced that it has acquired the Pennsylvania and 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 operations of Correctional Physician Services, Inc. (CPS). The transaction was structured as an asset purchase. CPS has assigned its contracts for the Eastern Region of the Pennsylvania Department of Corrections and the Yonkers Region of the New York Department of Correctional Services to Prison Health Services health services Managed care The benefits covered under a health contract , Inc., an operating subsidiary of America Service Group. The purchase price for the acquisition was $14 million cash, financed with the Company's existing Senior Credit Facility. The acquisition is expected to be accretive to the Company's earnings within the current year. CPS is a privately held company privately held company A firm whose shares are held within a relatively small circle of owners and are not traded publicly. with headquarters located in Blue Bell, Pennsylvania Blue Bell is a census-designated place (CDP) in Whitpain Township in Montgomery County, Pennsylvania, in the United States. As of the 2000 census, its population was 6,395. . Combined, the Pennsylvania and New York operations of CPS provided services to approximately 21,000 inmates and had approximately $41 million in revenue during 1999. The CPS operations complement and consolidate America Service Group's existing operations in Pennsylvania and New York. "We are honored to expand our relationships with the Pennsylvania Department of Corrections and the New York Department of Correctional Services," said Michael Catalano, President and Chief Executive Officer of America Service Group. "Our company will continue to serve these clients with the added commitment of management and clinical talent at CPS." America Service Group Inc., based in Brentwood, Tennessee, is a leading provider of correctional healthcare services in the United States. America Service Group contracts with approximately one hundred government agencies to provide a wide range of managed healthcare programs tailored to specific client needs. The Company employs over 4,200 medical, professional and administrative staff nationwide. This press release may contain "forward-looking" statements made pursuant to the safe harbor provisions 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. As such, they involve risk and uncertainty that actual results may differ materially from those projected in the forward-looking statements. A discussion of the important factors and assumptions regarding the statements and risks involved is contained in the Company's filings with the Securities and Exchange Commission. |
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