NEW YORK, Nov. 17, 2008 (GLOBE NEWSWIRE) -- Aveta Inc., a leader in Medicare Advantage, announced today that it's California operating company North American Medical Management California, Inc. (NAMM California) has closed on its acquisition of Primary Care Associated Medical Group, Inc. (PCAMG), a leading independent physicians association (IPA) in north San Diego county, California, with 52 primary care physicians and over 300 specialists serving more than 30,000 commercial members and 5,200 Medicare Advantage seniors. PCAMG generated revenues of $44 million in 2007. Terms of the acquisition were not disclosed.
NAMM California already manages medical services for approximately 195,000 commercial members and 36,000 Medicare Advantage seniors in Southern California through its network of 13 IPAs. The acquisition of PCAMG expands NAMM California's geographic footprint into neighboring San Diego county, a large and attractive market on the southern border of Riverside county. "PCAMG is the largest IPA in northern San Diego county and this acquisition is a natural expansion for NAMM California as we grow and leverage our strong position in southern California's medical management market," said Douglas Malton, Senior Vice President of Finance and Corporate Development at Aveta. "We see PCAMG as providing opportunities to not only grow its membership and broaden its coverage, but also facilitating further expansion in San Diego county."
"This acquisition will allow us to continue to expand our successful medical management model," said Rick Shinto, President and Chief Executive Officer of Aveta. "Our unique approach to medical management, pioneered by NAMM California and also successfully adapted in Puerto Rico, where Aveta operating companies are the Medicare Advantage market leaders serving more than 216,000 members, has put Aveta in the forefront of efforts to provide quality and enhanced care to members while controlling costs."
According to Mr. Malton, Aveta continues to benefit from strong operating results and a greatly improved capital structure as it has retired more than $80 million of its long-term debt in 2008. Aveta's performance was recognized in September when Standard & Poor's upgraded the counterparty credit and senior debt ratings of Aveta and its operating companies in California and Puerto Rico.
About Aveta
Aveta Inc. is one of the largest health insurance organizations in the United States, caring for over 216,000 Medicare beneficiaries and 345,000 commercial members. Aveta specializes in building provider networks and management service organizations that emphasize integration and coordination of healthcare. Aveta is headquartered in Ft. Lee, New Jersey and has operations in Puerto Rico, California and Illinois
About North American Medical Management of California
North American Medical Management California is a leading provider of management services to medical groups and IPAs in California. The NAMM contracted network represents over 600 primary care physicians and 1,000 specialists committed to providing the highest quality patient care and experience to over 225,000 commercial and 40,000 senior HMO members. For over a decade, NAMM has been an innovator in health care with a track record of extraordinary service.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy any security nor shall any offer, solicitation or sale be deemed to be made by the Company in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Special note regarding forward-looking statements:
The matters disclosed in the foregoing release include, and oral statements made from time to time by representatives of the Company may include, forward-looking statements that represent the Company's current expectations of the future. Any such statements are subject to risks and uncertainties that could cause actual outcomes to differ materially from these expectations. These forward-looking statements include statements relating to the Company's anticipated financial performance and business prospects. These forward-looking statements are necessarily estimates reflecting the best judgment of senior management and involve a number of risks and uncertainties, some of which may be beyond our control, that could cause actual results to differ materially from those suggested by the forward-looking statements. Such factors include, without limitation, the Company's ability to implement its revised business plan and improve the operating performance of its business, membership enrollment and disenrollment patterns; changes in utilization; changes in medical and prescription drug cost trends; the Company's ability to accurately estimate and calculate Part D risk corridor adjustments; CMS retroactive risk adjustments to Medicare rates; marketing expenses related to limited open enrollment; increasing competition and potential confusion in the marketplace regarding other MA, MA-PD, PDP, and PFFS plan offerings; the Company's ability to accurately estimate incurred but not reported medical claims; contractual disputes with providers; increases in costs or liabilities associated with litigation; legislative and regulatory actions or changes; costs associated with information and data systems conversions and compliance with regulatory mandates; recent management changes; and changes in tax estimates, assets, or liabilities and valuation allowances related thereto. These forward-looking statements speak only as of the date stated and the Company does not undertake any obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, even if experience or future events make it clear that any expected results expressed or implied by these forward-looking statements will not be realized.