Private Healthcare Systems to Acquire American LIFECARE; Expands Services Across South

WALTHAM, Mass.--()--July 20, 2004--Private Healthcare Systems (PHCS), the nation's leading health care cost management company, today announced it has signed an agreement to acquire American LIFECARE, a leading independent PPO network headquartered in New Orleans, LA.

American LIFECARE has a 20-year history of providing managed care networks and services across the South. American LIFECARE operates a regional network of more than 400 hospitals, 17,000 providers and 1,400 ancillary providers in Alabama, Arkansas, Louisiana, Mississippi and Tennessee. In 2003, the company received NCQA Certification for Utilization Management, a distinction only a handful of managed care organizations nationwide have earned.

The acquisition strengthens the already robust PHCS Network and services in the southern states. In turn, American LIFECARE's customers will soon have access to the nation's largest proprietary PPO.

"American LIFECARE has a well established reputation for providing quality and service to their customers," said Joseph Driscoll, Private Healthcare Systems' CEO and President. "This acquisition capitalizes on the synergies between our companies, enabling us to expand and enhance the service offerings and access we provide to our customers."

"PHCS and American LIFECARE are both deeply committed to the integrity of our networks and services," said Ed Michael Reggie, American LIFECARE's Chairman of the Board. "Our new relationship will enable us to tap into the premier resources offered by PHCS. The results to our customers will be enhanced savings and seamless national coverage."

This acquisition will create the 11th regional office for PHCS. The company will be known as American LIFECARE, a division of Private Healthcare Systems.

About PHCS

For 19 years, Private Healthcare Systems has been meeting the network and care management needs of customers across the country. Corporate headquarters are in Waltham, Massachusetts, with regional offices located throughout the United States. PHCS is the second largest care management company in the nation as well as the largest proprietary PPO in the country. The PHCS Network includes nearly 425,000 providers and 3,700 facilities. PHCS is the first and only national PPO to earn four endorsements of quality from two independent, nationally recognized quality assurance organizations, NCQA and URAC.

Contacts

PHCS
Christine Martiny, 781-895-6804
cmartiny@phcs.com

Contacts

PHCS
Christine Martiny, 781-895-6804
cmartiny@phcs.com