FLOWER MOUND, Texas, June 16 /PRNewswire-FirstCall/ -- American HealthChoice, Inc. (BULLETIN BOARD: AMHI) (the "Company") announced today that the number of clinics in its Affiliated-Revenue program has increased significantly and is the primary reason for the Company reporting a profit of $7,000 for the six month period ended March 31, 2004 compared to a loss of $170,000 in the comparable 2003 period. In the last two quarters, revenue from patient billings for this program was $305,000. Revenue in the second quarter of $204,000 was a 100% increase compared to the first quarter of $100,000.
In June 2003, the Company initiated its Affiliated-Revenue program to increase patient billings through arrangements with established clinics owned and/or operated by individual doctors. Under this program, the Company directs patients to these clinics using its established network of patient referral sources comprised of independent marketers and other professionals. The Company reports patient billings as revenue and the treating doctor's fee as an expense with payment at the time of collection. The primary financial benefit is additional operating income without new fixed costs such as employee salaries or office rent. The arrangement is equally attractive to the treating doctor because of the increased number of patients and the resulting increased income. To date the Company has focused on clinics located in and around large Texas cities where there exists no American HealthChoice owned clinics within a 30-minute travel time for prospective patients.
As of June 15, 2004, the Company has arrangements with fifteen clinics, including two in Austin, two in the Dallas area, and six in the Houston area. According to Dr. J.W. Stucki, CEO of AMHI, "We anticipate adding three to four additional clinics to our Affiliated-Revenue program each quarter. This new source of patient billings will be responsible for a much larger percentage of American HealthChoice's revenue and operating income in the future."
About American HealthChoice:
American HealthChoice is a medical services company comprised of a parent company and twenty five owned and affiliated medical clinics in Texas and Louisiana.
Safe Harbor Statement: The statements in this release that relate to future plans, expectations, events, performance, and the like are forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and the Securities Exchange Act of 1934. Actual results or events could differ materially from those described in the forward-looking statements due to a variety of factors, including those set forth in the company's report on Form 10-KSB for fiscal year 2003 filed with the Securities and Exchange Commission.
American HealthChoice, Inc.CONTACT: investor relations, Equitilink LLC, +1-877-788-1940, or forintl. inquiries, +1-858-824-1940, for American HealthChoice, Inc.
Web site: http://www.americanhealthchoice.com/
