HOUSTON, July 5, 2001 (PRIMEZONE) -- SurgiCare, Inc. (OTCBB:SXCR), a Houston-based Ambulatory Surgical Center (ASC) provider, announced today that it will launch the company's fourth multi-purpose surgery center later this month. The new center, located in Pasadena, Texas, a suburb of Houston, has passed its inspection with the Texas Department of Health, and will be assigned an operating license number. It is due to open in the next few weeks, with local surgeons performing procedures in its three operating theaters by the end of the month.
"This is an excellent example of how SurgiCare is continuing to ramp up its operations both through acquisitions and joint ventures," said Dr. David Blumfield, CEO of SurgiCare Inc. "This opening means that in effect, we are increasing the number of centers under our operating umbrella by another 33 percent. We have known from the beginning that we have a superior business model that will allows us to effectively operate the kind of top quality outpatient surgery facilities that can compete head-to-head with almost any hospitals. We expect to continue building on the progress we've made over the last year as we seek out other highly profitable acquisitions and joint venture opportunities."
SurgiCare's newest center, which will be a multi-specialty surgery center with a heavy concentration on orthopedics and general surgery, is a joint venture with Cirrus Health Services, Inc., a company that SurgiCare recently joined forces with. The agreement calls for SurgiCare to help develop and manage co-owned ASCs within Cirrus' growing list of specialty medical buildings. This partnership has expanded SurgiCare's business model beyond traditional mergers and acquisitions, providing it with a lucrative new avenue for generating increasing revenues through its management expertise.
SurgiCare has assembled a team of highly qualified industry professionals that is equipped to effectively manage multiple ASCs, essentially cutting operational costs and increasing profit margins. As Cirrus Health Services continues building out new facilities, the SurgiCare management team will step in to operate the centers without any up-front acquisition costs.
About Cirrus
Cirrus Health Services, Inc. has one existing medical office building and ASC in the Houston area, and has also broken ground on a second building. The company currently has two more buildings in the planning stage. Cirrus recruits physicians and surgeons to set up practices in its buildings. These doctors become part owners of the building and perform procedures in its ASCs.
About SurgiCare, Inc.
SurgiCare, Inc. offers licensed, freestanding Ambulatory Surgery Centers for use by physicians and its physician partners and their patients. Freestanding refers to the fact that the facilities are physically and organizationally independent from a hospital. Ambulatory Surgery means surgical procedures that do not require overnight hospitalization after the surgery. The ASCs are run under the guidance of a committee of physician partners. SurgiCare's goal is to grow through mergers, acquisitions, and turnkey management contracts in conjunction with physician-involved supervision and potential equity participation within a public company model. For more information on SurgiCare, please visit the company's Website at www.surgicareinc.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates," or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of SurgiCare, Inc. (the Company) to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others, the risk factors contained in the Company's Annual Reports and other filings with the Securities and Exchange Commission. In addition, a description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the Company assumes no responsibility to update the information included herein for events occurring after the date hereof.