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 CONCORD, N.H., Jan. 13 /PRNewswire/ -- Healthsource, Inc. (NYSE: HS), a leading operator of HMOs and managed health care services, today announced that it has closed its previously announced acquisition of the remaining 60 percent interest in Healthsource Maine owned by local physicians. Under the definitive agreement, Healthsource paid $11,500,000 in cash for the outstanding majority interest; no shares of Healthsource, Inc. were issued in the transaction.
 Healthsource Maine's revenues and net income for the nine months ended Sept. 30, 1993 were $42.0 million and $1.9 million respectively. At Sept. 30, 1993 Healthsource Maine had a net worth of $6.9 million and HMO membership was 35,700, up 37 percent from the same period a year ago.
 Norman C. Payson, M.D., president and chief executive officer of Healthsource, Inc. said, "We are pleased to have completed the purchase of the remaining interest in Healthsource Maine. This commonality of ownership interest will expedite further economies and synergy with our contiguous health plans in New Hampshire. Moreover, the managed care market in Maine is highly underpenetrated and will likely grow rapidly. As the largest HMO in Maine, we believe we will prosper accordingly. We look forward to continuing our excellent working relationships with Maine physicians in our combined efforts to deliver quality and affordable health care in Maine."
 Chairman of Healthsource Maine, David Schall, M.D. added, "The completion of the merger between Healthsource, Inc., and Healthsource Maine is a logical step in the progression of our relationship over the last seven years. We have worked closely with Healthsource to contain the cost of health care while maintaining a standard of excellence in health care delivery for our members. We look forward to continuing that alliance as the changes from health care reform unfold."
 Healthsource, Inc. is a geographically diversified provider of a broad range of managed health care services. Healthsource, Inc. owns HMOs operating in New England, the Midwest and the Southeast and has minority ownership interests in and provides services to HMOs in New York and North Carolina. Healthsource, Inc. also offers point of service plans, preferred provider organizations and utilization review and managed care services to other health care payors, and owns one of the largest third party administrators in New England. Healthsource provides managed care services to Liberty Mutual for the New Hampshire workers' compensation residual market and has established ChubbHealth, an HMO joint venture with Chubb LifeAmerica in New York City.
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 /CONTACT: Thomas Congoran, chief financial officer, or Tracey Turner, shareholder relations, of Healthsource, 603-225-5077; or Kerry Thalheim, 212-661-8030, or Kathy Brunson, 312-266-7800, both of the Financial Relations Board, for Healthsource/

CO: Healthsource, Inc.; Healthsource Maine ST: New Hampshire, Maine IN: HEA SU: TNM

CM-JL -- NE012 -- 1859 01/13/94 15:56 EST
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Publication:PR Newswire
Date:Jan 13, 1994

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