Capital Development Group to Acquire MedTel Centers.Business Editors/Health and Medical Writers RIVERSIDE, Calif.--(BW HealthWire)--Apr. 12, 2001 Capital Development Group Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CDVG) has signed a Letter of Intent to acquire MedTel Centers Inc., a company with several years of experience in the fast-growing outpatient surgery Outpatient Surgery, also referred to as ambulatory surgery or same-day surgery, is surgery that does not require an overnight hospital stay. The term “outpatient” arises from the fact that surgery patients may go home do not need an overnight hospital medical field. It is a client of the CDVG subsidiary IntraMed Inc., an Internet-based patient scheduling, tracking and billing system. This IntraMed system, the Patient Tracking Wizard(TM), facilitates the scheduling, transfer and updating of patient information between physicians, outpatient surgery centers, and insurance adjusters, lowering costs and digitizing and speeding up the process. Internet access See how to access the Internet. is completely secure and meets federal healthcare standards. MedTel Centers specializes in workers compensation pain management and arthroscopic procedures conducted at outpatient surgery centers in California. MedTel organizes surgery center facilities for groups of orthopedic and pain management doctors, improving facility utilization rates and increasing doctor net revenues, while ensuring high quality patient care. As physician earnings in California have been negatively impacted by increasingly restrictive 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, and Medicare payments, there has been a tendency to move patients from the higher cost hospital environment to outpatient surgery centers. This is particularly the case for arthroscopic procedures such as knees, shoulders and carpel carpel One of the leaflike, seed-bearing structures that constitute the innermost whorl of a flower. One or more carpels make up the pistil. Fertilization of an egg within a carpel by a pollen grain from another flower results in seed development within the carpel. tunnel, which typically take less than an hour to perform and the patient can be ready to leave in 3 or 4 hours. "This acquisition, will increase opportunities for the use of IntraMed's Patient Tracking Wizard(TM) System and enable the company to participate in higher margins associated with elevated capacity utilization rates Capacity utilization rate The percentage of the economy's total plant and equipment that is currently in production. Usually, a decrease in this percentage signals an economic slowdown, while an increase signals economic expansion. for surgery centers," said Mike Vahl, president of Capital Development Group. "Extensive credit lines currently under negotiation will provide working capital to expand MedTel's surgery center activities." The acquisition is expected to close within the next 60 days. 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. Act Disclaimer The statements contained in this release and statements that the company may make orally in connection with this release are not historical fact and are 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. Actual results may differ materially from those forward-looking statements, as such statements involve risks and uncertainties that could significantly impact the company's business and the actual outcome and results may differ materially. |
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