Concentra Operating Corporation Announces Changes in Business Segment Reporting.Business Editors ADDISON Addison, village (1990 pop. 32,058), Du Page co., NE Ill.; inc. 1884. An industrial suburb of Chicago, it manufactures machinery and plastic items. , Texas--(BUSINESS WIRE)--March 27, 2001 Concentra Operating Corporation ("Concentra") today announced that it will change the way it reports its business segment results during 2001 to improve the manner in which operating results are disclosed in its financial statements. Previously, Concentra divided its financial results into "Health Services health services Managed care The benefits covered under a health contract ," "Cost Containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. ," and "Field Case Management" segments. Under the new approach, although the Health Services segment will remain the same, Concentra's other segments will be grouped to provide a "Network Services" segment and a "Care Management Services" segment. The Company believes this change will promote a better understanding of the underlying nature of its operations by providing a more consistent representation of similar business units within each of the two newly formed segments. Further, the Company believes that the enhanced segment reporting segment reporting A type of financial reporting in which the firm discloses information by identifiable industry segments. For example, Union Pacific Corporation reports revenues, income, assets, depreciation, and capital expenditures for each of four will more effectively communicate Concentra's current operating environment In computing, an operating environment is the environment in which users run programs, whether in a command line interface, such as in MS-DOS or the Unix shell, or in a graphical user interface, such as in the Macintosh operating system. and business unit strategy. Commenting on the revised reporting approach, Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. J. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs , President and Chief Executive Officer, said, "I am pleased that our segment reporting will provide more clarity to our investors as to the underlying nature of our primary businesses. We have increasingly been managing the Company in a manner that differentiates between operations that seek savings from healthcare providers and those that facilitate returning patients to work. Our new segmentation will more effectively reflect this distinction." Thomas also noted that the Company currently plans to make no changes to its internal operating structure in connection with its introduction of this new financial statement segmentation approach. Under the new segmentation, the composition of the Health Services segment will remain the same. The Health Services segment will continue to reflect the Company's revenues and business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets that provide specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. injury and occupational healthcare services to employers. Through 224 nationwide health centers, Health Services delivers primary and rehabilitative re·ha·bil·i·tate tr.v. re·ha·bil·i·tat·ed, re·ha·bil·i·tat·ing, re·ha·bil·i·tates 1. To restore to good health or useful life, as through therapy and education. 2. care, including the diagnosis, treatment and management of work-related injuries and illnesses. Health Services also provides a full complement of non-injury, employment-related health services, including physical examinations, pre-placement substance abuse testing, job-specific return to work evaluations and other related programs. The new Network Services segment will reflect those businesses that involve the review and repricing Repricing To change the price of an asset. In derivatives, it sometimes refers to the exchange of options of with different strike prices. repricing of provider bills and which are routinely compensated based on the degree to which Concentra achieves savings for its clients. This segment will include Concentra's preferred provider organization pre·ferred provider organization n. Abbr. PPO A medical insurance plan in which members receive more coverage if they choose health care providers approved by or affiliated with the plan. , provider bill review business and out-of-network out-of-network Managed care adjective Referring to a provider/service that is not part of an MCO's network of contracted providers/services. See Managed care organization. bill review operations. This segment will also include Concentra's first notice of loss operations. Care Management Services will reflect the Company's professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. aimed at curtailing the cost of workers' compensation workers' compensation, payment by employers for some part of the cost of injuries, or in some cases of occupational diseases, received by employees in the course of their work. and auto claims through field case management, telephonic case management, independent medical exams and utilization management Utilization management is the evaluation of the appropriateness, medical need and efficiency of health care services procedures and facilities according to established criteria or guidelines and under the provisions of an applicable health benefits plan. . These services are designed to maximize medical improvement and, where appropriate, to expedite ex·pe·dite tr.v. ex·pe·dit·ed, ex·pe·dit·ing, ex·pe·dites 1. To speed up the progress of; accelerate. 2. the return to work. These services also concentrate on monitoring the timing and appropriateness of medical care. As a result of the above changes, effective January January: see month. 1, 2001, the Company will prospectively report segment performance on its Health Services, Network Services and Care Management Services groups. Had these segments been reported in this manner historically, the Company's Statements of Operations on a segment basis would have been stated as follows:
Years Ended December 31,
-----------------------------------
2000 1999 1998
Revenue: --------- --------- ---------
Health Services $ 399,660 $ 330,064 $ 259,481
Network Services 162,596 158,022 135,805
Care Management Services 189,905 193,326 215,770
--------- --------- ---------
752,161 681,412 611,056
Gross profit:
Health Services 77,876 64,981 58,300
Network Services 61,855 62,288 54,431
Care Management Services 19,006 19,654 29,028
--------- --------- ---------
158,737 146,923 141,759
General and administrative
expenses 66,491 65,291 45,326
Amortization of intangibles 14,628 12,960 8,119
Non-recurring charges -- 54,419 33,114
--------- --------- ---------
Operating income 77,618 14,253 55,200
Interest expense 68,932 35,779 18,021
Interest income (803) (2,900) (4,659)
Loss on change in fair value
of hedging arrangements 9,586 -- --
Other, net (725) (391) 44
--------- --------- ---------
Income (loss) before income
taxes and cumulative 628 (18,235) 41,794
effect of accounting change
Provision for income taxes 4,362 8,269 19,308
--------- --------- ---------
Income (loss) before cumulative
effect of accounting change (3,734) (26,504) 22,486
Cumulative effect of accounting
change, net of tax 2,817 -- --
--------- --------- ---------
Net income (loss) $ (6,551) $ (26,504) $ 22,486
========= ========= =========
Quarters Ended
(Unaudited)
----------------------------------------------
March 31, June 30, Sept. 30, Dec. 31,
----------------------------------------------
Revenue:
Health Services $ 94,260 $ 103,004 $ 105,696 $ 96,700
Network Services 40,919 38,862 39,078 43,737
Care Management
Services 45,917 48,482 47,990 47,516
-------- --------- --------- --------
181,096 190,348 192,764 187,953
Gross profit:
Health Services 17,265 22,891 23,397 14,323
Network Services 15,472 13,933 13,274 19,176
Care Management
Services 4,117 6,296 5,682 2,911
-------- --------- --------- --------
36,854 43,120 42,353 36,410
General and
administrative
expenses 16,919 16,246 16,149 17,177
Amortization of
intangibles 3,566 3,658 3,689 3,715
-------- --------- --------- --------
Operating income 16,369 23,216 22,515 15,518
Interest expense 16,221 17,926 17,857 16,928
Interest income (80) (331) (104) (288)
(Gain) loss on change
in fair value of
hedging arrangements (1,537) 2,483 1,818 6,822
Other, net (196) 73 (140) (462)
-------- --------- --------- --------
Income (loss) before
income taxes and
cumulative effect
of accounting change 1,961 3,065 3,084 (7,482)
Provision (benefit)
for income taxes 893 1,921 2,279 (731)
-------- --------- --------- --------
Income (loss) before
cumulative effect
of accounting change 1,068 1,144 805 (6,751)
Cumulative effect
of accounting
change, net of tax -- -- -- 2,817
-------- --------- --------- --------
Net income (loss) $ 1,068 $ 1,144 $ 805 $ (9,568)
======== ========= ========= ========
Concentra Operating Corporation, the successor to and a wholly-owned subsidiary of Concentra Inc., is the comprehensive outsource solution for containing healthcare and disability costs. Serving the occupational, auto and group healthcare markets, Concentra provides employers, insurers and payors with a series of integrated services In computer networking, IntServ or integrated services is an architecture that specifies the elements to guarantee quality of service (QoS) on networks. IntServ can for example be used to allow video and sound to reach the receiver without interruption. which include employment-related injury and occupational health care, in-network and out-of-network medical claims review and re-pricing, access to specialized preferred provider organizations, first notice of loss services, case management and other cost containment services. This press release contains certain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. , which the Company is making in reliance on 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. Investors are cautioned that all forward-looking statements involve risks and uncertainties, and that the Company's actual results may differ materially from the results discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, the potential adverse impact of governmental regulation on the Company's operations, interruption INTERRUPTION. The effect of some act or circumstance which stops the course of a prescription or act of limitation's. 2. Interruption of the use of a thing is natural or civil. in its data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a capabilities, operational financing and strategic risks related to the Company's capital structure and growth strategy, possible fluctuations in quarterly and annual operations, possible legal liability for adverse medical consequences, competitive pressures, adverse changes in market conditions for the Company's services, and dependence on key management personnel. Additional factors include those described in the Company's filings with the Securities and Exchange Commission. |
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