-- Annualized Company-wide Revenues to Exceed $70 Million --
TAMPA, Fla.--(BUSINESS WIRE)-- Comprehensive Care Corporation (“CompCare” or the “Company”) (OTCBB: CHCR) today announced that its wholly-owned subsidiary, CompCare de Puerto Rico, Inc. (“CCPR”), a specialty healthcare company based in San Juan, Puerto Rico, has been awarded a two-year contract from MMM Healthcare, Inc. (MMM) and PMC Medicare Choice, Inc. (PMC), two affiliated Medicare Advantage health plans serving approximately 185,000 members in Puerto Rico. The contract becomes effective on September 18, 2010, boosting CompCare’s total annualized revenues to over $70 million.
Under the terms of the contract, CCPR will deliver customized mental health and substance abuse (MHSA) services and pharmacy management services, and other innovative health and wellness programs for Medicare members under MMM and PMC health plans. “This contract marks a new milestone for CompCare and our wholly-owned CCPR subsidiary,” said Clark Marcus, CompCare’s Chairman and Co-Chief Executive Officer. “With the addition of the MMM and PMC contract to our other new contracts, our managed care program has now grown from a 2010 beginning point of approximately 750,000 members to a comfortably projected year-end membership population in excess of 1.2 million members, with top-line revenues growing from a beginning point of approximately $14 million to a comfortable year-end projection in excess of $70 million of annualized revenues. This equates to a growth rate of 500% in only nine months, assuming no additional contracts are awarded to the Company. We attribute this exciting growth curve to an exceptional new management team, which has dramatically focused our attention on customer service and detail while streamlining and customizing our programs to meet the specific needs of our customers and their members. We believe this type of approach is essential to meet the needs of customers and members given the significant challenges that our national healthcare programs are facing in this decade. We fully expect that our growth will continue throughout the coming year.”
To aid in this growth, CCPR plans to launch a full-service office in San Juan, Puerto Rico that will provide an on-site customer service call center, care management, claims processing and will also administer special patient requests, including 24/7 access to emergency services. The Puerto Rican operation will be managed and operated by approximately 40 newly hired employees from the San Juan area, as well as executive management who will relocate from the CompCare corporate office in Tampa. Future plans also include the implementation of a direct-to-patient outreach program to improve the quality of patient care and reduce hospital stays.
Orlando González, CPA, Esq., President of MMM and PMC, stated, “We are pleased to have selected CompCare to partner with MMM and PMC following a competitive bidding process. The management team at CompCare understands the transition taking place in the healthcare industry and shares our vision for creating patient-centered and effective MHSA programs that are cost effective and promote long-term wellness. This partnership represents a very positive change for our members and gives both companies opportunity for growth.”
Established in 1969, CompCare provides behavioral health, substance abuse and employee assistance programs for governmental agencies, managed care companies and employer groups throughout the United States. Headquartered in Tampa, Florida, CompCare focuses on personalized attention, flexibility, a commitment to high-quality services and innovative approaches to behavioral health that address both the specific needs of clients and changing healthcare industry demands. For more information, please call 813-288-4808.
Established in 2001, MMM Healthcare, Inc. (MMM) is a health maintenance organization that provides high-quality Medicare Advantage health plans for nearly 130,000 elderly and special needs populations in Puerto Rico. With great satisfaction rates, MMM leads Puerto Rico by offering integrated health management services that are cost-effective and, most importantly, improve each member’s quality of life. MMM also offers special needs plans, covering chronic obstructive pulmonary diseases, pre-end stage renal diseases, congestive heart failure and diabetes. For more information, visit mmm-pr.com.
A sister plan to MMM, PMC Medicare Choice, Inc. (PMC) provides cost-effective, extended benefits to the Medicare population. Founded in 2004, PMC covers more than 52,000 lives through a broad network of more than 7,500 contracted primary care physicians, specialists, hospitals and other points of care across Puerto Rico. A wide array of plans that meet their specific needs is offered to every beneficiary, achieving high membership levels. For more information, visit www.pmcpr.org.
Except for statements of historical fact, the matters discussed in this press release, including but not limited to the company’s projected annualized revenues, plans related to the San Juan operations, projected year-end member population and prospects for continued growth, are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company’s control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in local, regional, and national economic and political conditions, the effect of governmental regulation, competitive market conditions, varying trends in member utilization, our ability to manage healthcare operating expenses, our ability to achieve expected results from new business, the profitability, if any, of our capitated contracts, increases or variations in cost of care, seasonality, the company’s ability to obtain additional financing, and additional risk factors as discussed in the reports filed by the company with the Securities and Exchange Commission, which are available on its website at www.sec.gov.
For Comprehensive Care Corporation
ProActive Capital Resources Group, LLC
Jeff Ramson, President, 212-297-6103
KEYWORDS: United States North America Caribbean Florida Puerto Rico
INDUSTRY KEYWORDS: Women Health Hospitals Other Health Children Consumer Family Men Managed Care