MIAMI–(HISPANIC PR WIRE – BUSINESS WIRE)–Jan. 13, 2003–Physicians Healthcare Plans, Inc. (PHP): PHP Holdings, Inc. and its subsidiary, Physicians Healthcare Plans, Inc. (PHP), announce the closing of a transaction with AMERIGROUP Corporation of Virginia Beach, Virginia. AMERIGROUP paid approximately $121 million for PHP’s Medicaid, Healthy Kids and Summit programs. In addition, shareholders of PHP have received or will receive from PHP approximately $57 million in connection with the transaction. Accordingly, the transaction is expected to generate up to approximately $180 million to PHP shareholders.
Immediately prior to the transaction with AMERIGROUP Corporation, PHP sold its Medicare CarePlus Health Plan HMO business to Michael B. Fernandez, former Chairman and CEO of PHP, and other PHP shareholders.
“This transaction provides us with the opportunity to focus our attention exclusively on the Medicare sector,” said Michael B. Fernandez, who will remain Chairman and CEO of the Medicare HMO.
The Medicare HMO will be named CarePlus Health Plans and is anticipated to generate annual revenues in excess of $400 million and serve the healthcare needs of over 40,000 seniors in Miami-Dade and Broward counties.
CarePlus Health Plans HMO will be headquartered in Coral Gables, Florida and will retain all 950 employees in South Florida. In addition, the company will operate CAC-CarePlus Medical Centers, Inc., CarePlus Pharmacies Inc., and CarePlus Transport Co.
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CarePlus Health Plans, Inc., Miami
Michael B. Fernandez, 305/441-9400 ext. 2250