MIAMI, Feb. 14 /PRNewswire-FirstCall/ -- Physicians Healthcare Management Group, Inc. (Phyhealth) (Pink Sheets: PHYH), a developer of health maintenance organizations (HMOs) in partnership with physicians, today announced the completion of a $1.5 million financing, which will enable Phyhealth to develop and launch its pilot HMO in 2008. The pilot will initially be owned and operated by Phyhealth and will serve as the model from which future HMOs will be launched in partnership with participating physician groups.
This latest round of funding is designated for the pilot HMO's development and marketing costs and follows a previous funding completed in the fourth quarter of 2007 for $2.5 million to satisfy the regulatory capital surplus requirement for HMOs. The funds are held in Phyhealth Plan Corporation, a Phyhealth subsidiary formed in September 2007, which was established in accordance with Florida insurance regulations and standard industry practice to qualify as the applicant for the HMO Certificate of Authority.
Mr. Robert Trinka, chairman and chief executive officer, stated, "This latest financing is an important milestone along the critical path to the company's entry into the health insurance arena. The total $4 million in funding for the pilot HMO gives us the opportunity to start up our health insurance operations and initiate our major revenue streams by year end."
Mr. Trinka continued, "Last month we brought Stephen Dunn on board to guide us through the certification process. His years of experience in the Florida HMO market make him especially valuable to Phyhealth both from the standpoint of his marketing and compliance expertise and his extensive contacts with key members within the healthcare and insurance communities. We now have the right combination of talented people and financial resources in place to take the company to the next level. This is an exciting time in the company's history."
Mr. Trinka concluded, "With health care costs rising much faster than our economic growth and with over 47 million Americans without health insurance, an innovative approach to the problem is warranted. We are dedicated to bringing to market the first community-based solution, physician-driven and patient-centered, that will deliver the highest value for the healthcare dollar. By putting physicians back in charge of their patients' care, physicians can redirect resources to programs that take a preventive approach to disease and address disorders before they become acute, thereby maintaining patients' health and keeping costs down. Our model aligns incentives among the HMO, physician and their patients to benefit all concerned."
About Physicians Healthcare Management Group, Inc.
Physicians Healthcare Management Group, Inc. (Phyhealth) is a developer of community-based health maintenance organizations (HMOs) that are owned and operated in partnership with the participating physicians. Phyhealth Plans are designed to deliver high-quality affordable healthcare by enabling physicians to assume end-to-end management of healthcare for their patients. The Phyhealth model empowers physicians to provide preventive healthcare and proactively manage their patient's general health by aligning incentives amongst the HMO, physician and the patient. Phyhealth intends to offer additional value-added products and services in cooperation with physicians, including medical malpractice insurance, local care facilities and wellness programs, as well as information technologies such as secure electronic medical records.
This press release contains statements, which may constitute "forward- looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of Physicians Healthcare Management Group, Inc, and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Additional information is available at: http://www.phyhealth.com.
|SOURCE Physicians Healthcare Management Group, Inc.|
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