LEWISVILLE, Texas, June 2 /PRNewswire/ -- Horizon Health Corporation
(Nasdaq: HORC) and Coral Gables, Florida-based Ramsay Health Care, Inc.
(Nasdaq: RHCI) announced today that, effective June 1, 1998, Horizon acquired
from Ramsay all the outstanding capital stock of FPM Behavioral Health, Inc.
of Winter Park, Florida. The purchase price was $20,000,000 in cash, subject
to certain post-closing adjustments. As a result of the acquisition, FPM
Behavioral Health, Inc. has become a wholly-owned subsidiary of Horizon.
FPM provides managed behavioral health care services, employee assistance
programs (EAP) and other related behavioral health care services to health
maintenance organizations and self-insured employers. At February 28, 1998,
FPM had 46 contracts covering approximately 1,135,000 lives in 9 states. FPM
provides its services both through health care professionals employed by FPM
and through independent health care professional that have contracted with FPM
on a fee-for-service basis. At April 1998, the FPM provider network was
composed of over 2,000 providers. For the nine months ended March 31, 1998,
FPM revenues were approximately $19.0 million and pretax income was
approximately $2.0 million.
With the FPM acquisition, Horizon, through its subsidiaries, will have
approximately 200 contracts for the provision of EAP and mental health
services covering nearly 2.0 million lives.
Horizon plans to consolidate its previously acquired Florida PPS
subsidiary into FPM's operations prior to the close of its current fiscal year
on August 31, 1998. As a result of this and other factors, Horizon expects
the acquisition of FPM to be accretive to its fiscal 1999 earnings.
James Ken Newman, Chairman of Horizon Health Corporation, said, "We are
very pleased with the successful completion of the FPM acquisition. The FPM
acquisition further expands our capabilities in the provision of employee
assistance programs and other behavioral health care services offered by
Horizon. The FPM acquisition continues the diversification of our business
operations consistent with our overall business plan."
Ramsay Health Care Chairman of the Board, Paul J. Ramsay, stated, "We are
very pleased with the consummation of this transaction because it begins to
solidify our debt reduction strategy."
Luis E. Lamela, Chief Executive Officer of Ramsay Health Care, Inc.
commented, "This transaction reaffirms our commitment to Ramsay Health Care,
Inc.'s new strategic direction which focuses on the Youth Services Industry."
The statements contained herein based on future expectations rather than
on historical facts are forward-looking statements as defined under the
Private Securities Litigation Reform Act of 1995 that involve a number of
risks and uncertainties. Factors that could cause actual results to differ
materially from those in any such forward-looking statements include, but are
not limited to, Horizon's ability to retain FPM's existing contracts, to
successfully integrate the operations of FPM on a cost-effective basis, and
various other risks as outlined in Horizon and Ramsay's Securities and
Exchange Commission filings.
Ramsay Health Care, Inc. is a provider and manager of specialized programs
and services for at-risk and troubled youth. The Company through its
subsidiary, Ramsay Youth Services, Inc., operates residential youth
facilities, group homes and a juvenile assignment center. Ramsay Health Care,
Inc. also operates psychiatric facilities and manages the delivery of
behavioral health care programs on behalf of acute care hospitals and
community mental health centers.
Horizon Health Corporation is a leading provider of EAP and mental health
services to business and managed care organizations as well as the leading
contract manager of clinical programs offered by general acute care hospitals
in the United States. At June 1, 1998, Horizon had over 200 contracts to
provide EAP and mental health services covering nearly 2,000,000 lives.
SOURCE Ramsay Health Care, Inc.
 back to top
Company News On-Call: http://www.prnewswire.com or
fax, 800-758-5804, ext. 116733
CONTACT:
James W. McAtee, Executive Vice President,
Finance and Administration, Horizon Health Corporation,
972-420-8200; or Isa Diaz, Vice President, Corporate Relations,
Ramsay Health Care, Inc., 305-569-4626
|
