COVENTRY SIGNS DEFINITIVE AGREEMENT TO SELL MEDICAL OFFICES ASSOCIATED WITH ST. LOUIS HEALTH PLAN.NASHVILLE, Tenn.--(BUSINESS WIRE)--March 18, 1997--Coventry Corporation (Nasdaq/NM:CVTY) today announced the signing of a definitive agreement among Coventry, Group Health Plan, Coventry's health plan in St. Louis, Missouri, and BJC BJC British Journal of Cancer BJC Baptist Joint Committee BJC Bechtel Jacobs Company, LLC BJC Bryce Jordan Center (Penn State University building) BJC Barnes-Jewish/Christian (BJC Healthcare) Health System(SM) (BJC) providing for BJC's acquisition of Group Health Plan's nine medical practices located throughout the St. Louis area. The sale is expected to result in an after-tax gain to Coventry of approximately $7 million. In connection with the sale, BJC and Group Health Plan will also enter into a ten-year agreement for provision of health care services for a fixed percentage of premium. Consummation of the transaction is subject to regulatory review by the Missouri and Illinois Departments of Insurance and federal antitrust regulators, as well as by Coventry's bank lenders. Allen F. Wise, president and chief executive officer of Coventry Corporation, said, "We are very pleased with the progress we are making on the sale of both our Group Health Plan and HealthAmerica medical offices. These two transactions are a very important step in Coventry's strategic plan to focus its resources on its core 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, business. In addition to financial gains from these anticipated sales, the successful divestiture of these business units will enable the signing of long-term global capitation agreements with major provider organizations that will reduce Coventry's medical costs for a significant number of its risk members." BJC Health System was established in 1993 and is the second- largest non-profit healthcare system in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Serving two distinct markets, mid-Missouri and the St. Louis/southern Illinois region, the system provides community-based and academic healthcare services at more than 100 inpatient and ambulatory sites throughout Missouri and southern Illinois. Recognizing that one of its key strengths lies in fostering relationships with physicians, BJC involves physicians at all levels of strategic planning Strategic planning is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. . Nine physicians are members of the system's board of directors and physicians lead numerous quality, clinical and performance improvement initiatives. As the St. Louis region's second-largest provider of managed care, Coventry, through GHP GHP Georgia Health Partnership GHP Geisinger Health Plan (Danville, PA) GHP Governor's Honors Program GHP Good Handling Practices (food safety) GHP Grand High Priest and HealthCare USA, serves customers both in Missouri and Illinois and provides healthcare benefits to over 262,000 members. The managed care company contracts with 680 employer groups and offers HMO, point-of-service, and open access plans to their employees and retirees. Coventry Corporation, headquartered in Nashville, Tennessee “Nashville” redirects here. For other uses, see Nashville (disambiguation). Nashville is the capital and the second most populous city of the U.S. state of Tennessee, after Memphis. , is a managed health care company that provides a wide range of health benefits and services to a broad cross section of employer and government-funded groups in Pennsylvania, Ohio, West Virginia West Virginia, E central state of the United States. It is bordered by Pennsylvania and Maryland (N), Virginia (E and S), and Kentucky and, across the Ohio R., Ohio (W). Facts and Figures Area, 24,181 sq mi (62,629 sq km). Pop. , Missouri, Illinois, Virginia and Florida. The Company operates from regional headquarters in Pittsburgh and Harrisburg, Pennsylvania; St. Louis, Missouri; Richmond, Virginia; and Jacksonville, Florida. This press release contains forward-looking information. The forward-looking statements are made pursuant to the 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 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 may be significantly impacted by certain risks and uncertainties described herein and in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission for the year ended December 31, 1995. CONTACT: Coventry Corp., Nashville Dale B. Wolf, 615/391-2448 |
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