doublesys Reaches Definitive Agreement for Medicare Managed Care Plan in Florida
MIAMI, April 27, 2004 – doublesys Corporation (UPHD.PK) announced today it has reached a definitive agreement for the introduction of its first Medicare managed care plan in Florida.
The health plan, with an established provider network, is located in a Florida county with nearly 90,000 total Medicare beneficiaries, of whom more than 25,000 are currently enrolled in Medicare managed care programs, also known as Medicare Advantage plans. The health plan consists of approximately 140 physicians who currently treat 6,000 active Medicare Advantage patients. The average Medicare Advantage payment rate in Florida is $650 per member per month.
Over the past 12 months, doublesys has secured agreements with primary care and specialist physicians, hospitals and ancillary service providers. Currently, the company is negotiating the specific financing necessary to launch the health plan. Due to a confidentiality agreement, the identity of the health plan and the terms of the agreement cannot be disclosed until the necessary state and federal approvals are finalized.
"This is an important step for doublesys as our unique physician-owned health plans will remove the wedge that has been driven between physicians and their patients by traditional HMO's," said Robert L. Trinka, doublesys's chairman and chief executive officer. "In addition to providing physicians with capital they need to form Medicare managed care plans, doublesys gives them the risk-management expertise, infrastructure, information systems and other management resources they need for the formation and operation of their local doublesys health plan."
Currently, there are 40 million Medicare beneficiaries in the United States, with about 11 percent enrolled in managed care plans. The Bush administration predicts the new Medicare law will encourage 35 percent of beneficiaries to enroll in private Medicare managed care plans by 2007.
doublesys develops and operates Medicare managed care plans that are predominantly owned and governed by physicians. With its turn-key approach, the company provides physicians with access to capital, risk-management expertise, infrastructure, information systems and other management resources for the formation and operation of doublesys Local Health Plans. doublesys's model enables physicians to focus on their primary responsibility: taking care of their patients' health and delivering high-quality medical care.
Headquartered in Miami , doublesys is currently developing Medicare managed care plans in Florida and throughout the United States . For more information, visit http://www.doublesys.com or call 305.779.1779.
Information contained in this press release, other than historical information, should be considered forward-looking in nature and is subject to various risks or uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Such risks and uncertainties include, but are not limited to, the company's expectation of operating losses and negative cash flow for the foreseeable future. Other risk factors include the company's limited operating history, unpredictability of operating results, possible changes in federal and state regulations, reliance on future financing and key employees, as well as the competitive marketplace.