Coastal Physician Group Completes Sale of Better Health Plan Inc.DURHAM, N.C.--(BUSINESS WIRE)--Aug. 21, 1997-- Coastal Completes Asset Sale to Fidelis Coastal Physician Group Inc. (NYSE NYSE See: New York Stock Exchange :DR) announced the completion of the sale of Better Health Plan Inc. (BHP BHP blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. ), its New York-based Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. Health Services health services Managed care The benefits covered under a health contract plan to The New York New York, state, United StatesNew 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 State Catholic Health Plan Inc. (d/b/a Fidelis Care New York). Formal approval of the transaction was received from the New York State Department of Health earlier this week. Coastal is realizing approximately $7.75 million in cash proceeds from the sale of certain assets in the transaction. Liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of remaining assets and liabilities may generate up to an additional $2.5 million for the Company in the future. Fidelis Care New York (Fidelis) is a not-for-profit managed care organization sponsored by the eight New York State Catholic Dioceses. Licensed as Prepaid Health Service Plans, Fidelis and BHP both contract with the New York State Department of Health for the enrollment of Medicaid recipients into managed care programs. BHP serves over 40,000 Medicaid recipients contracting with a network of approximately 7,700 physicians and 109 hospitals. After entering the New York markets in 1993, BHP was purchased by Coastal Physician Group Inc. in May 1995. Fidelis will continue to use both Better Health Plan and Fidelis Care New York plan names for current members and for the enrollment of new Medicaid recipients. Neither members nor participating providers are expected to see any noticeable changes during this transition period. Steven M. Scott, M.D., chairman and chief executive officer of Coastal Physician Group Inc., commented "we are pleased that Fidelis will continue to provide the highest quality care to our members. They are dedicated to serving the needs of the Medicaid recipients in the State of New York." Coastal Physician Group Inc. is a diversified diversified (di·verˑ·s physician management company providing a broad range of health care and administrative services to physicians, hospitals, employers, managed care programs and other health care providers. -0- Note: This news release contains statements that are forward looking in nature, and are inherently subject to uncertainties. Actual results may differ materially from those reflected in the forward looking statements based on a number of important risk factors. CONTACT: Coastal Physician Group Inc., Durham, N.C. W. Randall Dickerson, Chief Financial Officer, 919/383-0355 Mark L. Lane, President 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. or Rev. Patrick J. Frawley (for Fidelis Care New York) 718/896-6500 |
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