Patient
Infosystems and CBCA Announce Agreement For Purchase of CBCA
Care Management
Rochester, New York, August 26, 2004 – Patient Infosystems,
Inc. (the "Company") (OTCBB: PATY - News), a leading
healthcare solutions company, today announced it has signed
a definitive agreement to purchase CBCA Care Management, a
subsidiary of CBCA, Inc.
CBCA
Care Management is a full service care management company,
which leverages health plan’s inherent cost advantages
by making a measurable impact on the number, intensity and
cost of patients’ encounters with the healthcare delivery
system.
CBCA
Care Management reported to the Company, that it had unaudited
revenues for 2003 of $6.8 million, and EBITDA (Earnings before
interest, taxes, depreciation, and amortization) of $1.6 million.
For the first six months of 2004 CBCA Care Management reported
to the Company it had unaudited revenues of $3.8 million and
EBITDA of $1.2 million. The purchase price for the proposed
acquisition is $7.1 million, subject to Adjustment This information
is unaudited and has not been verified by the Company.
Upon
closing of the acquisition, Patient Infosystems expects significant
revenue growth for the remainder of 2004 and full year 2005
as compared to 2003. Management of the Company expects revenues
for 2004, based on revenues to date and the continuing performance
of service to current customers, to be in the range of $14
million to $18 million without giving effect to the acquisition.
Patient
Infosystems and CBCA have been strategic partners for the
past four years, providing a flexible, comprehensive portfolio
of services to improve the quality of patient care while reducing
healthcare expenses. Patient Infosystems has already integrated
Care Team Connect for Health Nurse Help Line and Disease Management
services with CBCA’s utilization review and case management
services for several clients. As successful partners, the
two companies have had a high level of collaboration, facilitation
of cross-referrals, and a patient-centered approach to improved
quality of care.
The
acquisition of CBCA Care management pushes Patient Infosystems’
beyond traditional utilization and disease management and
into the management of chronically ill participants as well
as those participants who are at high risk, but have not experienced
an acute event. The integration of care management into Care
Team Connect for Health consolidates the key medical management
into one seamless system, producing efficiencies that drive
improved health outcomes and reduce overall health care spending.
CBCA
Care Management services include:
- Case
Management – The Case Management team includes
medical professionals who help ensure appropriate care,
while containing costs.
- Utilization
Review (UR) – UR focuses on the appropriateness
of care involving a hospital stay or elective procedure
by providing Predetermination, Inpatient Certification,
Discharge Planning, Outpatient UR and Retrospective UR.
- Maternity
and Newborn Program – “Your Baby &
You” helps expectant mothers have healthier pregnancies
and healthier babies by working to prevent problems through
proper prenatal care, as well as intervening early with
intensive case management when unavoidable problems do arise.
- Behavioral
Health Management Services – These services
utilize a multi-faceted approach drawing upon the expertise
of professionals who specialize in adult and adolescent
chemical dependency, mental health, and behavioral medicine.
Roger
Chaufournier President and CEO of Patient Infosystems Inc.
stated, “CBCA has been a very strong partner over the
past four years. We believe their expertise and services are
a good fit with our corporation. We anticipate this acquisition
will leverage our relationship as partners and will drive
greater synergies in our solution set providing clients with
a seamlessly integrated, all-encompassing health management
solution. As a combined entity we feel there would be financial
benefits including cost reductions and the ability to retain
100% co-branded platform sales. The proposed acquisition is
anticipated to be accretive to Patient Infosystems.”
George
Pillari, Chairman and CEO of CBCA Administrators, Inc. commented,
“I believe the collaboration resulting from the Patient
Infosystems’ Care Team Connect model with our Care Management
systems has proven a compelling value proposition. Patient
Infosystems will now be able to integrate these services onto
one common platform which we anticipate will bring even greater
value to our clients. We look forward to continuing our strong
partnership with Patient Infosystems and expect this transaction
to be seamless to our clients as we have worked closely with
Patient Infosystems for the past four years and remain committed
to continuing the same high level of service.”
ABOUT
PATIENT INFOSYSTEMS
Patient Infosystems is a leader in disease and demand management
programs that reduce healthcare costs and increase patient
quality of life and service. The Company, through its wholly
owned subsidiary, American Caresource, is also a pioneer in
ancillary benefits management. For more information on Patient
Infosystems please go to www.ptisys.com
This
release contains information about management's view of the
company's future expectations, plans and prospects, our ability
to reduce costs for our clients, to benefit their businesses
and our ability to recognize our goals for 2004 that constitute
forward-looking statements for purposes of the safe harbor
provisions under the Private Securities Litigation Reform
Act of 1995. Actual results may differ materially from historical
results or those indicated by these forward-looking statements
as a result of a variety of factors including, but not limited
to, risks and uncertainties associated with the company's
financial condition, its ability to sell its products, its
ability to compete with competitors and the growth of the
healthcare market as well as other factors that are discussed
in the company's filed Annual Report on Form 10-KSB, as well
as other documents filed with the Securities and Exchange
Commission. |
