TUCSON, Ariz., July 7 /PRNewswire-FirstCall/ -- The Providence Service Corporation (Nasdaq: PRSC) today commented on recent budget discussions in California as part of the state's attempt to close its large budget deficit.
"As we have stated previously, given that our programs in California are primarily funded by Medicaid and the Mental Health Services Act (Proposition 63 of 2004), we do not expect to experience material funding issues for our California book of business," said Fletcher McCusker, Chairman and CEO. "Also, any delay in payments from the state to our county payers should typically not impact our recognition of revenue for services we provided."
As previously reported, in May 2009, California voters rejected several of the Governor's budget propositions. Chief among these special election referendums was Proposition 1E, which would have amended the Mental Health Services Act to allow the Governor to redirect funds, for a two-year period, from mental health services for children and young adults. The Federal Court has also issued a permanent injunction preventing Medicaid cuts in the state.
The Providence Service Corporation, through its owned and managed entities, provides home and community based social services and non-emergency transportation services management to government sponsored clients under programs such as welfare, juvenile justice, Medicaid and corrections. Providence does not own or operate beds, treatment facilities, hospitals or group homes, preferring to provide services in the client's own home or other community setting. The Company provides a range of services through its direct and managed entities to over 81,000 clients through 1,019 contracts at March 31, 2009, with an estimated 6.7 million individuals eligible to receive the Company's non-emergency transportation services related to its LogistiCare operations. Combined, the Company has a nearly $1 billion book of business including managed entities.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "believe," "demonstrate," "expect," "estimate," "anticipate," "should" and "likely" and similar expressions identify forward-looking statements. In addition, statements that are not historical should also be considered forward-looking statements. Readers are cautioned not to place undue reliance on those forward-looking statements, which speak only as of the date the statement was made. Such forward-looking statements are based on current expectations that involve a number of known and unknown risks, uncertainties and other factors which may cause actual events to be materially different from those expressed or implied by such forward-looking statements. These factors include, but are not limited to the global credit crisis, capital market conditions, and other risks detailed in Providence's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2008. Providence is under no obligation to (and expressly disclaims any such obligation to) update any of the information in this press release if any forward-looking statement later turns out to be inaccurate whether as a result of new information, future events or otherwise.
|SOURCE The Providence Service Corporation|
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