First American Group Announces Acquisition of Community Health Choice of Illinois, Inc.

RICHTON PARK, Ill.--(BW HealthWire)--May 14, 1999--

First American Group of Companies, Inc. (FAGOC) of Richton Park, Illinois announced today that it has entered into an agreement to acquire Community Health Choice of Illinois, Inc., a Chicago based HMO serving primarily the Medicaid population. The acquisition is subject to regulatory approval.

"When completed, the acquisition will have no effect on Community Health Choice's members or providers," said M. Daniel Splain, FAGOC's President. "Members will continue to receive the same health care coverage from the same providers. Providers will continue to take care of their patients as before. There will be no difference in how health benefits are received or delivered, with the exception of new ID cards and a new mailing address."

First American Group is the holding company for a number of managed care related ventures including American Health Care Providers, Inc.(AHCP), one of the longest serving health maintenance organizations in the State of Illinois, and today the fifth largest HMO in Illinois.

"The addition of Community Health Choice and its membership and providers to our already diversified base is another step in our strategic positioning to make First American and its subsidiaries the most effective and customer services oriented managed care plan in the state," said Asif A. Sayeed, Founder, Chairman, and CEO of the First American Group. "As the only locally owned managed care operation in the Chicago market, we are confident that our regional strategy is sound and that ultimately the beneficiary of this consolidation will be our clients."

In late 1998 First American acquired the Illinois operations of two prominent national HMOs: Maxicare Health Plans of the Midwest; and, Principal Health Care of Illinois.

With the addition of Community Health Choice, First American Group now serves more than 170,000 subscribers in the State of Illinois, making the health plan one of the five largest in the state, according to Mr. Splain, who also points out that First American Group is now the second largest minority owned business in Illinois.

"Our recent acquisitions to the First American family increase our critical mass while creating economies of scale that allow us to be a more effective provider of managed care services," says Splain. "We are committed to creating a model for excellence in managed care on the cornerstone of customer service. We never lose sight of the fact that our business primarily deals with human life and health issues."

FAGOC's subsidiaries include American Health Care Providers (dba American HMO), American United Life and Health Insurance Company, International Health Management Systems, Inc., American Family Health Services, and Vital Home Health. FAGOC has 350 employees in offices in Chicago, Springfield and Richton Park, Illinois and Little Rock, Arkansas.