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 NEWPORT BEACH, Calif., Oct. 18 /PRNewswire/ -- CAPP CARE Inc., a Newport Beach managed health care company, has entered into a definite agreement to acquire the business of Pacific Review Services, an independent utilization review services company owned by PacifiCare Health Systems (NASDAQ: PHSYA and PHSYB), the managed health care organization based in Cypress, Calif. The announcement was made jointly by both companies, though terms were not disclosed.
 Pursuant to the agreement, CAPP CARE will assume the services and obligations of Pacific Review Services to its clients including daily client service duties and business activities, which currently represent more than 425,000 individuals nationwide. Officials for both companies expect a full transition to be completed by year-end 1993. CAPP CARE will offer PRS's existing services and plans to offer employment in the local area to the majority of PRS employees.
 Commenting on the transaction, Michael E. Henry, CAPP CARE's president and chief operating officer, said, "We have known PRS to be a company that enjoys a fine reputation for its dedicated staff and outstanding customer service. By continuing utilization review, case management and other specialized services to PRS's customers, CAPP CARE will continue the tradition of providing unique customer service and demonstrated value through its managed health care services. In addition, CAPP CARE will be able to offer its nationwide preferred provider network of doctors and hospitals to PRS customers."
 "Our long-term strategic direction calls for our providing utilization review services as part of our fully integrated approach to managed care," said Roger Taylor, M.D. and executive vice president of PacifiCare Health Systems. "Maintaining an independent company that provides only utilization management services no longer made strategic sense for us. We felt the current needs of our PRS customers would be best served by a company that specializes in providing such services to national manged indemnity and PPO health coverage programs. CAPP CARE is exactly that kind of company."
 Taylor went on to add that CAPP CARE features a national provider network, specialized case management, sophisticated computer systems and other related services that will benefit PRS clients. "We are confident that PRS's customers will welcome and utilize their services," he said. "especially since many of our PRS employees are expected to move to CAPP CARE."
 Ed Zalta, M.D., CAPP CARE's founder and chairman, added, "The PRS business adds to our critical mass, helping make CAPP CARE even more efficient and effective in our utilization review, and especially, case management operations. We are particularly excited about the prospect of being able to provide these new customers access to the CAPP CARE providers in our managed care networks across the country."
 Founded in 1982, CAPP CARE is a national managed health care company, based in Newport Beach. It provides a wide array of managed care services to self-insured employer, insurance company, employer coalition and union trust customers. Over 3,000,000 covered lives use CAPP CARE services. Its extrensive managed care networks include nearly 75,000 doctors and 2,000 hospitals in 180 markets in 38 states.
 PacifiCare Health Services is one of the nation's leading managed health care organizations. Primary operations include managed care products for employer groups and Medicare beneficiaries in California, Oklahoma, Oregon, Texas and Washington, serving more than 1 million members. Other specialty managed care operations include Medicare risk management services, pharmacy benefit management, military health care management, coordination of managed care products for multistate employers, health and life insurance, behavioral health, workers' compensation and health promotion.
 -0- 10/18/93
 /CONTACT: Kari Jo Bloomer, marketing communications specialist, 714-251-2200, ext. 481, or Lavinia Hudson, marketing communications assistant, 714-251-2200, ext. 408, both of CAPP CARE/

CO: CAPP CARE Inc.; Pacific Review Services; PacifiCare Health Systems ST: California IN: HEA SU: TNM

JL-LM -- LA015 -- 3201 10/18/93 09:04 EDT
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Publication:PR Newswire
Date:Oct 18, 1993

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