PREFERRED CARE PARTNERS SET TO ACQUIRE NEIGHBORHOOD HEALTH PARTNERSHIP’S MEDICARE BUSINESS
MIAMI, FL - April 26, 2005 - In a joint statement, Preferred Care Partners (”Preferred Care”) and Neighborhood Health Partnership (”NHP”) announced today that they have signed a Definitive Agreement in which Preferred Care will acquire the Medicare business of NHP. This transaction will require the approval of the Centers for Medicare and Medicaid Services (”CMS”) and both organizations project a possible effective date of June 1, 2005. The transaction will make Preferred Care the largest privately-owned Medicare Advantage Health Plan in South Florida. NHP will continue to operate its Commercial HMO business in Miami-Dade, Broward and Palm Beach counties.
Mr. Joseph L. Caruncho, Chief Executive Officer of Preferred Care Partners Holding Corp., the parent company of Preferred Care stated that “this acquisition enables us to offer our innovative PSO model to a wider cross section of Medicare beneficiaries in the South Florida Market. We intend to continue the course set by NHP of providing a high level of service to both members and providers.” For NHP members transitioning over to Preferred Care Partners, the change will be seamless and their benefits will remain unchanged for 2005. This acquisition covers all 38,000 members currently enrolled with NHP’s Medicare Advantage program and will bring Preferred Care’s membership to more than 45,000, once it is effective.
Mr. Joseph R. Papa, NHP’s Chairman and Chief Executive Officer stated that “Preferred Care shares our long standing commitment to both seniors and physicians in South Florida, so I know that Preferred Care will continue to provide the type of service and commitment to our members that they have become accustomed to in the past. At a time when specialization by regional managed care plans is more prevalent than ever, this transaction will provide NHP with additional capital resources to focus on an aggressive growth plan for its Commercial business, particularly in Broward and Palm Beach counties while Preferred Care will continue to service and grow a robust Medicare membership in the same region.” Both Caruncho and Papa agree that this will be a positive move forward for both organizations, as well as their members and providers.
“This will be a smooth transition with a continued commitment to being a low hassle partner for physicians and members,” said Justo Luis Pozo, President of Preferred Care. “Our success has been based on empowering physicians, and this transaction will not change that commitment” said Dr. Orlando Lopez-Fernandez, Chief Medical Officer of Preferred Care.
Preferred Care Partners has partnered with Ferrer Freeman & Co., a private equity firm located in Greenwich, CT, that invests exclusively in healthcare and healthcare-related companies, to consummate the acquisition.
Preferred Care is a Provider Sponsored Health Plan contracted with CMS to offer Medicare Advantage plans to Medicare beneficiaries in the South Florida market. Its unique PSO model focuses on empowering physicians to make clinical decisions for their patients in a manner that reduces costly administration. Since beginning operations as a Medicare Advantage Plan in 2002, the Company has seen significant growth and was named the fastest growing, privately held company in South Florida by the South Florida Business Journal. Its principal offices are located at One Datran Center, 9100 S. Dadeland Blvd., Suite 1250, Miami, Florida.
NHP is an HMO licensed by the State of Florida and currently operates in Miami-Dade, Broward and Palm Beach Counties. Born out of a coalition between Dimension Physician Hospital Organization and John Alden Insurance, it has been in operation since 1994. In July of 2002, NHP was acquired by private interests from the former provider owners and has grown to become the largest HMO operating in Miami-Dade County since that time. NHP has its principal offices at 7600 Corporate Center Drive in Miami.