CORAL GABLES, Fla., June 9 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) and Ramsay Managed Care, Inc. (Nasdaq: RMCR) today announced
that their merger will become effective on June 10, 1997. As a result of the
merger, Ramsay Managed Care, Inc. will become a wholly owned subsidiary of
Ramsay Health Care, Inc. The merger was previously approved by stockholders
of both companies and was recently approved by Ramsay Health Care, Inc's
current lender group as part of an amendment of the terms of its existing
indebtedness. Ramsay Health Care, Inc. also announced that it is continuing
its refinancing efforts.
In commenting on the merger, Paul J. Ramsay, Chairman of the Board of
Ramsay Health Care, Inc. stated, "We are very excited about the increased
revenue opportunities, cost savings, and efficiencies and other benefits which
will be realized as a result of the merger."
Ramsay Health Care, Inc. is a leading provider of behavioral health care
services, serving markets in 16 states. Ramsay Health Care, Inc. delivers a
comprehensive range of behavioral healthcare services at alternative delivery
sites including freestanding hospitals, juvenile residential treatment units,
and outpatient clinics. Ramsay Health Care, Inc. also manages behavioral
healthcare programs on behalf of other hospitals and community mental health
centers.
Ramsay Managed Care, Inc. operates a long-established business in the
management of mental health services and substance abuse programs on behalf of
self insured employers, health maintenance organizations (HMOs) and
governmental agencies in various states.
SOURCE Ramsay Health Care, Inc.
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CONTACT:
Bert Cibran, President & COO, 305-569-4621,
or Carol Lang, EVP & CFO, 305-569-4622, both of Ramsay Health
Care
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