Ion Health Holdings Closes On Initial Funding Round Of $13.5 Million; Money Used To Operate, Expand Medicaid HMO Plans

ERIE, Pa., May 11 /PRNewswire/ -- Ion Health Holdings, Inc. today announced it has, along with its affiliate Ion Health, Inc., successfully closed on an initial funding round of $13.5 million, enabling the company to operate a Medicaid Health Maintenance Organization (HMO) in Pennsylvania, and explore opportunities elsewhere.

The money comes primarily from Ion corporate officers, along with a $2.5 million line of credit granted by County National Bank, located in Clearfield, Pennsylvania.

Ion Health recently became the first Medicaid HMO in seven years to be granted a license to operate in Pennsylvania. It has begun successfully enrolling members in Erie County, located in the northwest part of the state. Company officials have previously indicated that the company intends to seek additional opportunities for expansion throughout Pennsylvania and other states.

"We believe our extension of a line of credit to Ion Health represents a prudent decision on our part," said Robert Berezansky, vice president at County National Bank. "Its officers have significant managed care and executive business experience. Their operating plan is backed by the proven success of their officers in this sector."

Anthony Horbal, Ion Health Holdings' chairman, noted that Ion Health has already begun generating revenues and is enrolling members at a rate exceeding initial projections. "Our past experience operating other Medicaid HMOs is enabling us to quickly move past the startup phase, toward meeting our objective of generating a positive cash flow while establishing an HMO that provides positive benefits for both health care providers and patients."

Horbal indicated that Ion Health Holdings has already begun to seek additional funding that will be used to fund the company's entry into other markets. He said discussions with potential investors are proceeding smoothly, placing the company in a favorable position to quickly close on supplementary financial support as needed.

CONTACT: Steve Friedberg, MMI Communications, +1-610-518-7474,stevefriedberg1@earthlink.net, for Ion Health Holdings