Wellcare Poised to Enter Into the Florida HMO Market.Business Editors/Health Writers KINGSTON, N.Y.--(BW HealthWire)--Dec. 23, 1999 The WellCare Management Group, Inc. (WellCare) (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: WELL), parent company of WellCare of New York New York, state, United States New 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 , Inc. (WCNY) and WellCare of Connecticut, Inc. (WCCT), today announced that it has signed a letter of intent to acquire Tampa General HealthPlan, Inc. d/b/a HealthEase (HealthEase), a Florida licensed Commercial and Medicaid Health Maintenance Organization. The transaction involves the sale of the outstanding and issued membership interest in HealthEase, together with certain assets, including its furniture and equipment, to WellCare. Additionally, Comprehensive Health Management, Inc., an affiliate of WellCare, has signed a management agreement with HealthEase which will go into effect immediately upon receiving approval from the Florida Department Florida is a department (departamento) of Uruguay. Population and Demographics As of the census of 2004, there were 68,181 people and 21,938 households in the department. The average household size was 3.1. For every 100 females, there were 100.4 males. of Insurance and the Agency for Health Care Administration. All liabilities incurred prior to the effective date of the management agreement, including claims for date of service prior to such effective date, shall be solely borne by HealthEase. The transaction is subject to, amongst other things, clearance by the Florida Department of Insurance and the Agency for Health Care Administration. HealthEase is a direct contract network model HMO network model HMO Managed care An HMO that contracts with 2 or more independent physician group practices to provide health services. Cf Group model, Independent practice association, Staff model. , which began offering its Medicaid Plan in December of 1994 and received its license to operate as a commercial health maintenance organization in June of 1997. HealthEase currently serves approximately 7,100 Medicaid members in the Tampa Bay Tampa Bay, inlet of the Gulf of Mexico, 25 mi (40 km) long and 7 to 12 mi (11.3–19 km) wide, W Fla., separated from the Gulf by numerous small islands; it receives the Hillsborough River. St. area. Kiran C. Patel, M.D., Chairman, President and Chief Executive Officer of WellCare, commented, "WellCare is entering into a market which the Management Team is intimately familiar with. We have the experience, knowledge and systems in place to immediately take over operations and move forward with our growth plans within the State of Florida. We also have a long-standing relationship with the providers and regulatory agencies in this market to effectuate an efficient and smooth transition. The acquisition allows us to maintain the current level of competition in the Florida 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, market and offer prospective members a choice in health plans. Most of all, Management is excited to have the opportunity to bring WellCare into the Florida market with the singular goal of providing high quality, affordable health care." WellCare's service area extends from New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. to the southern Adirondacks, west into the Mohawk River Valley and Southern Tier counties, and east into Connecticut. Cautionary Statement 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. Statement under 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: The statements contained in this release that are not historical facts are forward-looking statements, actual results may differ materially from those projected in the forward-looking statements which statements involve risks and uncertainties, including but not limited to, the following: the Company's ability to continue as a going concern; the inability to meet HMO statutory net worth requirements for WCNY or WCCT; the absence of a commercial line of business in WCNY until at least June, 2000; that increased regulation will increase health care expenses; that increased competition in the Company's markets or change in product mix will unexpectedly reduce premium revenue; that the Company will not be successful in increasing membership growth; that there may be adverse changes in Medicare and Medicaid Medicare and Medicaid U.S. government programs in effect since 1966. Medicare covers most people 65 or older and those with long-term disabilities. Part A, a hospital insurance plan, also pays for home health visits and hospice care. premium rates set by federal and state governmental agencies; that health care costs in any given period may be greater than expected due to unexpected incidence of major cases, natural disasters, epidemics, changes in physician practices, and new technologies; that the Company will be unable to successfully expand its operations into its recently approved service areas, including New York City, Westchester County and State of Connecticut; that major health care providers will be unable to maintain their operations and reduce or eliminate their accumulated deficits. Investors are also directed to the other risks discussed in the Company's Form 10K for the fiscal year ended December 31, 1998 and Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 1999 as well as other documents filed by the Company with the Securities and Exchange Commission. |
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