MARIETTA, Ga., May 11 /PRNewswire-FirstCall/ -- Matria Healthcare, Inc. announced today that it has been awarded four new disease management accounts. The Company also announced that three of its current accounts are implementing expansions to their Matria provided programs and services. Two of the expanded existing accounts are health plans and the other is a self-insured employer.
Matria’s four new awards of business are all with self-insured employers. In each of the new accounts, the employer is offering Matria’s wellness programs to improve the health awareness, lifestyle choices and productivity of their employees and dependents. In three of the four new employer accounts, additional Matria programs and services are being combined with the wellness programs to represent a broader suite of health enhancement programs available to their employees and dependents.
One existing health plan account already offers multiple Matria disease management programs for diabetes, congestive heart failure, coronary artery disease, asthma and chronic obstructive pulmonary disease to the majority of the members in the health plan. This major health plan is now expanding this offering of Matria’s disease management programs to the remaining membership in the health plan. The other existing health plan account is offering the Company’s health enhancement services to another one of their Administrative Services Only (ASO) self-insured employer clients. The existing employer expanding the Company’s programs is adding Matria’s 24/7 nurse triage services, wellness programs and the Company’s proprietary Health Risk Assessment (HRA).
Parker H. Petit, Chairman and CEO, said, “Health plans and employers alike desire solutions and programs that address the factors, lifestyle and behaviors that compromise the wellness and productivity of their members or employees. Increasingly, health plans and employers are demanding a suite of services that manage the entire continuum of care for their populations. They want proven programs and services that target all of their population including the healthy, those with chronic conditions and their members or employees with complex health conditions.”
In Matria’s April 21, 2006 press release, the Company announced the creation of a metric to gauge the potential impact of its new awards of business, and presented a schedule that categorized its new awards of business announced since the start of 2006, based on the anticipated annualized incremental revenue impact of each business award. This press release continues that process. Each of the four new and three existing awards of business are presented in the following schedule and categorized in one of three market sectors: healthplans (including their ASO clients), employers that are accessing our services directly, and biopharma companies.
Health Plans Employers Anticipated Annualized Number of Anticipated Annualized Number of Incremental Revenues New or Incremental Revenues New or Per New or Existing Per New or Existing Existing Account Accounts Existing Account Accounts greater than or equal greater than or equal to $10.0 million to $3.0 million $9.9 million to $2.9 million to $5.0 million $1.0 million 1 $4.9 million to $999,000 to $500,000 2 $2.5 million $2.4 million to 1 $499,000 to $250,000 $1.0 million $999,000 to $500,000 <$250,000 2 <$500,000 1
Matria expects to implement services for the new and expanded accounts primarily during the third and fourth quarters of 2006. The Company reported that the new and expanded awards of business announced today are in addition to the new business awards last announced by Matria on April 12, 2006.
ABOUT MATRIA HEALTHCARE
Matria Healthcare is a leading provider of comprehensive health enhancement programs to health plans, employers and government agencies. Matria manages major chronic diseases and episodic conditions including diabetes, congestive heart failure, coronary artery disease, asthma, chronic obstructive pulmonary disease, high-risk obstetrics, cancer, chronic pain, depression, end-stage renal disease, and obesity; delivers programs that address wellness, healthy living, productivity improvement, and patient advocacy; and provides case management of acute and catastrophic conditions. Headquartered in Marietta, Georgia, Matria operates through more than 60 offices around the United States. More information about Matria can be found on line at http://www.matria.com.
SAFE HARBOR STATEMENT
This press release contains forward-looking statements. Such statements include but are not limited to the ability of the Company to convert awards of business into implemented contracts, the timing of contract implementation, the continuing demand for the Company’s wellness and disease management programs, and the trend among existing accounts to expand their use of the Company’s programs and services. These statements are based on current information and belief, and are not guarantees of future performance. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include delays or problems in implementation of new disease management and wellness contracts, failure to convert awards of disease management business into implemented contracts, delays or problems in contract implementation, decreased employer and health plan interest in or demand for the Company’s wellness and disease management programs, failure of existing accounts to expand their use of the Company’s programs and services, developments in the healthcare industry, third-party actions over which Matria does not have control, regulatory requirements applicable to Matria’s business and the risk factors detailed from time to time in Matria’s periodic reports and registration statements filed with the Securities and Exchange Commission, including Matria’s Annual Report on Form 10-K for the year ended December 31, 2005. By making these forward-looking statements, Matria does not undertake to update them in any manner except as may be required by Matria’s disclosure obligations in filings it makes with the Securities and Exchange Commission under the federal securities laws.
Contact: Jeffrey L. Hinton Chief Financial Officer 770/767-4500
Matria Healthcare, Inc.
CONTACT: Jeffrey L. Hinton, Chief Financial Officer of Matria Healthcare,Inc., +1-770-767-4500
Web site: http://www.matria.com/
