MIAMI, May 21 /PRNewswire-FirstCall/ -- Physicians Healthcare Management Group, Inc. (Phyhealth) (Pink Sheets: PHYH), a developer of health maintenance organizations (HMOs) in partnership with physicians, announced today that it has finalized an agreement with Merrill Lynch's Lloyd Lapointe Group to manage the investments of Phyhealth Plan Corporation, Phyhealth's Pilot HMO. Under the agreement, Merrill Lynch will manage the initial $2.5 million capital surplus plus any additional surplus required to meet state regulations on an ongoing basis, subject to Florida State regulations governing qualified investments for HMOs. Merrill Lynch performs the same service for Physhield Insurance Exchange, Phyhealth's exclusive risk retention group.
The $2.5 million capital surplus, to be managed by Merrill Lynch, is 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.
Phyhealth's CEO, Robert Trinka, stated, "Merrill Lynch's oversight of these funds will help to strengthen the foundation of our Pilot HMO. We currently work with this same group, which is also responsible for managing the capital surplus account for Physhield Insurance Exchange, and we believe they have both the knowledge and experience necessary to ensure that these funds are managed to earn the highest rate of return, while complying with National Association of Insurance Commissioner's guidelines and Florida state regulations."
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 t
|SOURCE Physicians Healthcare Management Group, Inc.|
Copyright©2008 PR Newswire.
All rights reserved