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 to assume end-to-end management of healthcare for their patients. The Phyhealth model empowers physicians to provide preventive healthcare and proactively manage their patients' 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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