Comprehensive Care Corporation Doubles Its 2011 Revenues to Over $71 Million
TAMPA, Fla., April 2, 2012 /PRNewswire/ — Comprehensive Care Corporation (“CompCare”) (OTC BB: CHCR), a leading behavioral health, substance abuse and psychotropic pharmacy management services provider for managed care companies throughout the U.S., is pleased to announce that its revenues for 2011 more than doubled to $71,210,000 compared to revenues of $35,214,000 in 2010.
Clark Marcus, CompCare’s Chairman and Chief Executive Officer said, “To continue our upward growth momentum amid a changing health care landscape, management believed it was vitally important to improve the Company’s margins to levels that would support long-term, sustainable profitability. To achieve that result the Company adopted a growth/profitability strategy of reinvesting its top-line revenues during the 2010 through 2011 period in order to somewhat offset future needs for additional large re-investments moving forward. During this period we successfully streamlined and automated key business functions, expanded and strengthened our provider network, built a solid infrastructure and employee base, and developed ancillary products marketable to both the public and private sectors of health care. As a result of this reinvestment strategy, we believe the Company is extremely well positioned to absorb anticipated additional new business.”
“The increase in our revenue, we believe, validates the dedicated efforts of our board of directors and our management and support teams. We intend to continue to strengthen our national provider panel, develop additional innovative solutions to combat the upward spiraling cost of health care and leverage our existing expertise to address these health care trends. For example, the increasing elderly demographic nationwide, we believe, presents an opportunity for us to capitalize on our Medicare solutions. In addition, if the governmental mandates for health care are established, a greater number of people will be covered by health insurance. With these trends comes an increasing demand for behavioral health and pharmacy solutions. We believe that we are well positioned to capitalize on these trends.”
“One of our primary focus points over the last two years has been the development of an at-risk pharmacy program designed to materially reduce pharmacy costs to health plans and self-insureds. Prescription drugs represent approximately 10% of overall health care expenditures. We are confident that the innovative pharmacy plan developed by the Company can reduce these costs by up to 10%, which sets us substantially apart from the pack. We are so confident in this program that we are prepared to go at-risk on our clients pharmacy spend for as much as 10% below their previous year pharmacy expenditure. Our affiliations with a major retailer and a major Pharmacy Benefit Manager (“PBM”) provide the underpinnings to facilitate this program, which we have now begun to aggressively market. Management believes that the Company’s at-risk pharmacy program provides the Company with an important competitive edge in the market place; will eventually result in the national reduction of pharmacy costs in both the private and commercial sectors and will result in high margin, profitable revenue, for the Company, long term,” Mr. Marcus said.
Established in 1969, CompCare provides behavioral health, substance abuse and psychotropic pharmacy management services for managed care companies throughout the United States. Headquartered in Tampa, Florida, CompCare focuses on personalized attention, flexibility, a commitment to high-quality services and innovative approaches to behavioral health that address both the specific needs of clients and changing healthcare industry demands. The Company’s recently filed 10-K is available at www.sec.gov. For more information, please call 813-288-4808 or visit our website at www.compcare.com .
Except for statements of historical fact, the matters discussed in this press release, including but not limited to our ability to achieve profitability and the trend of our operating results towards profitability, are forward looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company’s control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, changes in local, regional, and national economic and political conditions, the effect of governmental regulation, competitive market conditions, varying trends in member utilization, our ability to manage healthcare operating expenses, our ability to achieve expected results from new and existing business, our ability to expand and manage our provider network, the profitability, if any, of our recently acquired or previously existing capitated contracts, the costs incurred in seeking new contracts, the loss or termination of any existing contract, increases or variations in cost of care, seasonality, the Company’s ability to obtain additional financing, and additional risk factors as discussed in the reports filed by the Company with the Securities and Exchange Commission, which is available on its website at www.sec.gov.
E & E Communications
SOURCE Comprehensive Care Corporation