Phyhealth Issues Quarterly Letter to Shareholders from CEO
MIAMI, Nov 08, 2006 (BUSINESS WIRE) -- Physicians Healthcare Management Group, Inc. (PHYH : physicians hlthcare mgmt co PHYH0.01, 0.00, -10.0%) , CEO, Robert Trinka, issued a quarterly letter to shareholders today, providing an update on the company's recent progress with respect to the execution of key strategic initiatives. The letter reads as follows: Dear Shareholders of Phyhealth, We are very pleased that our shareholder base continues to grow as more investors recognize the unprecedented investment opportunity presented by the looming national healthcare crisis and the solution Phyhealth offers in correcting this crippled system. Each Phyhealth Plan targets the patients of its participating physicians who control their own insurance purchasing decisions. Today, this growing segment encompasses over 100 million potential Phyhealth Plan members, who will spend in excess of $6,000 per person for their healthcare, or a total of $600 billion in this year alone. In what seems to have been perfect timing, the Monday edition (November 6th) of the Chicago Tribune (TRB : Tribune Company News , chart, profile, more Last: 31.62-0.62-1.92%
6:58am 11/08/2006
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: TRB31.62, -0.62, -1.9%) included a startling global healthcare report released by IBM (IBM : International Business Machines News , chart, profile, more Last: 92.75+0.15+0.16%
9:00am 11/08/2006
Delayed quote dataAdd to portfolio Analyst Create alertInsider Discuss Financials Sponsored by: IBM92.75, +0.15, +0.2%) that underscores the need for change in what the report describes as "a huge market with tremendous inefficiencies." The report points out that even though the United States spends 2.4 times more on healthcare than the average industrialized nation, the World Health Organization ranks it 37th in overall health system performance. Further, the IBM report states that, "More than 98,000 lives are lost each year in the United States alone due to medical mistakes. . . That's like having a jumbo jet crash every day." For those wishing to read the full IBM report, it can be accessed on IBM's website at: https://www-03.ibm.com/industries/healthcare/ssl/content/thankyou/1758 571.html. (Due to its length, this URL may need to be copied/pasted into your Internet browser's address field. Remove the extra space if one exists.) Phyhealth operates in this chaotic, rapidly evolving, and rich healthcare market, and brings to the market a unique, innovative health plan model that perfectly answers the IBM report's calls for, "Consumers to take charge of their own health, for the healthcare industry to adopt new technologies to become more efficient, and for everyone to put more emphasis on prevention and staying healthy rather than focusing on acute events". Notwithstanding this reinforcement of Phyhealth's business model and strategy, it is important to provide you with an update of specific milestones and deliverables met since my last shareholder communication in August of this year. Since my last shareholder update, Phyhealth has moved forward in a number of our key strategic initiatives: 1 With the addition of Scott Moore as the CFO resource on our management team, we are moving quickly to satisfy the requirements for becoming an SEC fully reporting company and eligible for trading on the OTC Bulletin Board.
2 The marketing of Physhield Insurance Exchange is well underway, we have introduced Physhield to a number of physician groups, and we have opened the door to important distribution relationships that will bring physicians into the medical malpractice program in the first quarter of 2007. Physhield is a unique program that has been universally well received and has garnered significant interest in the trade press.
3 The company is aggressively seeking private investment for the capital surplus, estimated at $2.5 million, necessary to implement our initial Phyhealth Plan. These funds are a prerequisite to applying for and obtaining the Phyhealth Plan's Certificate of Authority to operate as a licensed Health Maintenance Organization (HMO).
4 With our exhibit at the recent American Society for Healthcare Risk Management conference in San Diego, we kicked off our national physician awareness and information program. We are planning a full schedule of exhibition and speaking opportunities for 2007 aimed at the independent physicians and physician organizations that would most benefit from implementing the Phyhealth Plan model and/or subscribing to Physhield, our exclusive medical malpractice insurance solution.
5 Lastly, we have and are continuing to evaluate acquisitions, mergers and other strategic relationships that would fit with the Phyhealth business model, whether it is an existing HMO or another healthcare business that supports our overall strategy.
As I write this letter, we are in the midst of the mid-term elections, and as such, there is some uncertainty with respect to which party will control the Congress and many of the State Governments going forward. The IBM report predicts if things don't start changing soon, healthcare systems in our country and around the world will start collapsing by 2015. So, regardless of the outcome of these elections, we expect that healthcare will occupy a prime position on the national legislative agenda now and in the months and years to come. An important consideration is that the Phyhealth business model is built on the foundation of the physician-patient relationship; the constant in the healthcare equation that is least subject to change considering the widest range of regulatory scenarios. Aside from the market forces at work within our industry and the company's recent operational accomplishments, many of you are undoubtedly concerned with Phyhealth's stock price and the performance of your investment in the company. While we cannot be sure on why markets operate in the manner they do or comment on their day-to-day activity, we can express our continued belief that Phyhealth shares represent a compelling long-term investment opportunity for investors who have seriously considered the implication of our solution in the context of the current (and deteriorating) healthcare environment. I want to reassure you, the general investor population, and our prospective physician partners that Phyhealth persists in moving forward with our planned agenda. We are determined in our efforts to build the company, and we are confident that your patience will yield the expected return. I will look forward to updating you on our progress at the end of the year. We will provide continuing updates of significant events through press releases and on our website at www.phyhealth.com. I wish you and your families the very best on Thanksgiving and over the holiday season. Sincerely, Robert L. Trinka Chairman and Chief Executive Officer About Physicians HealthCare Management Group, Inc. Phyhealth develops and operates fully integrated healthcare organizations in partnership with physicians. Phyhealth Plans preserve the physician-patient relationship and deliver high-quality affordable healthcare within its selected communities. Phyhealth offers a turnkey, prepaid health plan solution to physicians for their Medicare and other individual patients who prefer to choose their own doctor and who make their own healthcare insurance purchasing decisions. Phyhealth Plans are unique in integrating all aspects of the delivery and financing of care, including providing medical liability insurance protection through Physhield Insurance Exchange, Phyhealth's exclusive risk retention group. The Phyhealth model empowers physicians to proactively manage their patient's general health and medical care and enhances physician financial rewards by increasing practice revenues, reducing expenses and restoring the economic value (equity) of their medical practices. Forward-Looking Statements
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