PEABODY, Mass., April 26 /PRNewswire-FirstCall/ -- PHC, Inc., d.b.a. Pioneer Behavioral Health (BULLETIN BOARD: PIHC) , a leading provider of inpatient and outpatient behavioral health services, announced today that it has successfully resolved the medical malpractice lawsuit brought against North Point Mental Health and a former clinician for conduct engaged in by the former clinician prior to PHC's acquisition of North Point.
As a result of the settlement, the Company will be making a payment of approximately $463,000, which compares to the previous judgment of approximately $3 million. The Company has not released other parties, including two insurance companies. Payments made by insurance and other related parties, if collected, could significantly reduce the Company's financial burden below the $463,000 payment.
Bruce A. Shear, Chairman and Chief Executive Officer of Pioneer Behavioral Health, commented, "Pioneer is committed to doing what is right for all parties involved, and I am confident this resolution is in the best interest of the plaintiff as well as Pioneer shareholders. We worked diligently to resolve this unfortunate situation in a timely fashion. Attorney fees, and the settlement will impact the Company's March quarter, causing a net loss. We believe this resolution allows us to fulfill our social responsibility, minimize the financial obligations and put the situation behind us so management can focus its attention on growing our business and serving our patients and clients."
About Pioneer Behavioral Health
Pioneer Behavioral Health contracts with national insurance companies, major transportation and gaming companies to provide behavioral health services. Pioneer also owns and operates Wellplace.com, a leading provider of Internet and 24/hr telephonic based behavioral health services to consumers and other segmented populations, and Pioneer Pharmaceutical Research, a growing clinical trials company. For more information visit http://www.phc-inc.com/ or http://www.haydenir.com/.
This press release may include forward-looking statements that are subject to risks and uncertainties. Forward-looking statements include information about possible or assumed future results of the operations or the performance of the company and its future plans and objectives. Various future events or factors may cause the actual results to vary materially from those expressed in any forward-looking statements made in this press release (or during this conference call). These factors and risks are discussed in the company's annual report on Form 10-KSB for the years ended June 30, 2002 and 2003, copies of which were filed with the Securities and Exchange Commission, and in our quarterly reports on Form 10-Q filed with the Securities and Exchange Commission since October 2003.
For more information, please contact Bruce A. Shear of PHC, Inc., +1-978-536-2777; or Investor Relations, Matthew Hayden of Hayden Communications, Inc., +1-843-272-4653, for PHC, Inc..
PHC, Inc.CONTACT: Bruce A. Shear of PHC, Inc., +1-978-536-2777; or InvestorRelations, Matthew Hayden of Hayden Communications, Inc., +1-843-272-4653, forPHC, Inc.
Web site: http://www.haydenir.com/
Web site: http://www.phc-inc.com/
