MIAMI, Jan. 30 /PRNewswire-FirstCall/ -- Physicians Healthcare Management Group, Inc. (Phyhealth) (Pink Sheets: PHYH), a developer of health maintenance organizations (HMOs) in partnership with physicians and manager of Physhield Insurance Exchange, a licensed medical malpractice insurer, today released the following letter to its shareholders:
Dear Phyhealth Shareholder:
We have welcomed a new year, a new Congress and a new administration in Washington. Healthcare reform is high on President Obama's agenda, and as with any new administration, insurers and health plans must be prepared for change. We strongly believe our unique community health plan model offers a superior solution for the delivery and financing of the highest quality, most affordable healthcare for communities across the nation. We are confident that our model can adapt to the widest range of regulatory scenarios. Responsibility and accountability of physicians and their patients forms the core of the Phyhealth Plan model.
For now, healthcare reform is overshadowed by the turmoil in the financial markets and the deepening recession. But, the legislative, regulatory and economic environments have come together in such a way that major changes to the healthcare system are more likely now than at any time since the introduction of Medicare in 1965. This environment presents a rare combination of opportunities and constraints for the Company.
Specifically, the intense focus on healthcare reform coupled with the financial problems in the industry has created a highly conservative regulatory and compliance climate within the insurance industry that has become more difficult and costly to navigate. Plus, with the federal and state governments and all the component actors in the healthcare system offering varied solutions, we believe that a watchful posture is warranted for the next few months as the parameters of healthcare reform become more clearly defined.
Given these delays, we believe it is in the Company's best interests to take advantage of several unique investment opportunities that have arisen as a result of the current market environment. These strategic investments will allow us to utilize our strong cash position of over $3 million in a prudent manner that will build the Company's capital surplus and as a result, increase value for our shareholders. At the same time, these investments provide us the financial flexibility to resume our activities and aggressively build out our community health plans at the appropriate time. We plan to provide the specific details of our investments in separate announcements and in our financial statements.
We remain very committed to pursuing our strategy to form community health plans in partnership with physicians, and this continues as our primary strategy for the months and years ahead. To cross the bridge to what we expect will be a very different era for the healthcare business; we have developed three key strategies for the coming year:
First, we will use our strong cash position to immediately take advantage of strategic investment opportunities that offer a highly favorable risk reward ratio. Growing the Company's assets is the best action the Company can take in the short run to strengthen our position to successfully pursue our business model, while at the same time increasing shareholder value.
Second, we are preparing to file a registration with the SEC and a Form 211 with FINRA to make Phyhealth a fully reporting Company traded on the OTC Bulletin Board this year. The audit of our financial statements for the year ending December 31, 2008 is progressing, and we expect to post our audited financial statements on the Pink Sheets Exchange by mid March.
Last, and most important, the Company is positioned to re-file the Pilot HMO's COA application with the regulators at an opportune time. Our entry into the individual and small group markets will be deferred into late 2009 or early 2010. We also plan to re-file our application with CMS for Medicare certification. However, significant changes are expected in the Medicare Advantage and Prescription Drug programs, which are likely to affect our entry into the Medicare market.
The country is undergoing unprecedented change that is impacting the full spectrum of our economy and of our society. Phyhealth is prepared to respond to these changes, and we are well positioned to take advantage of these opportunities in the months and years ahead. We look forward to keeping our shareholders apprised of any developments and remain focused on maximizing value for our shareholders.
Robert L. Trinka
Chairman & CEO
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.|
Copyright©2009 PR Newswire.
All rights reserved