National Health Partners Announces Landmark Union Deal
National Health Partners, Inc. (OTCBB:NHPR), a leading provider of unique discount healthcare membership programs, announced today that it has been selected by a 5,000-member union as the health benefit program provider for all of the union’s members. The deal is expected to generate annual revenue of between $7.2 million and $9.6 million for the company. Upon completion of the enrollment of all participating union members in CARExpress Plus, the company could be generating annual revenue of more than $12 million through this relationship.
The union will be comprised of approximately 5,000 members on behalf of whom the union will be purchasing specially-designed CARExpress Plus membership programs ranging in price from $125 per month for individuals to $285 per month for families. On a conservative basis, the company expects to obtain a minimum of between 3,000 and 4,000 members through this affiliation at an average price of $200 per month, yielding between $600,000 and $800,000 of revenue per month and between $7.2 million and $9.6 million of revenue per year. The actual amount of revenue that the company will generate through the union will depend on the total number of union members participating in CARExpress Plus and the mix of CARExpress Plus membership programs selected by the individual union members. The company expects to begin enrolling members during the third quarter of 2008.
“This is a landmark deal for National Health Partners,” stated David M. Daniels, President and Chief Executive Officer of National Health Partners. “We competed vigorously for this opportunity and are very excited to have been selected by the union as its health membership program provider. We are also very happy about the fact that this is a fully funded deal for our CARExpress Plus programs, meaning that the union will be paying the monthly membership fees to us directly out of the union’s cash reserves rather than requiring that the union members pay all or part of the fees. This relationship will generate millions of dollars of revenue for us during the second half of 2008 and beyond which will cause our quarterly and annual revenue to increase exponentially in the future. We are poised for explosive growth during the second half of 2008 and will continue to work aggressively to capitalize on all of the tremendous opportunities in front of us.”
This is the second time in 2008 that the company has been selected by a union as its health membership program provider and follows closely on the heels of several other agreements the company has announced in recent weeks. During the past six months, the company has entered into agreements with several affinity groups, such as unions, associations, chambers of commerce, small business associations and other organizations that have a large number of members or employees, as well as insurance brokers and agents, many of which are already producing revenue for the company. The company is also negotiating agreements with several new affinity groups that it expects to complete and announce in the near future. Many of these affinity groups have the potential to increase the company’s revenue and cash flow substantially over a relatively short period of time.
“This is really, really big,” added Mr. Daniels. “I take my hat off to everyone who came together on this project and have great faith that it is going to surpass all expectations. Our selection as the health membership program provider for this union is a major milestone for National Health Partners as it represents the single greatest accomplishment in the company’s history. This achievement has opened up doors for us with other large affinity groups that should result in us obtaining several additional deals in the future that are similar in size and scope to this one. Affinity groups are much better business partners for us than the marketing companies that we utilized in the past because affinity group members are much less costly to obtain and boast very high retention rates. Through affinity groups, we will be able to demonstrate the true benefits of our high-margin, monthly recurring revenue stream model on a large-scale basis.”
National Health Partners, Inc.
National Health Partners, Inc. is a national healthcare savings organization that provides discount healthcare membership programs to uninsured and underinsured people through a national healthcare savings network called “CARExpress.” CARExpress is one of the largest networks of hospitals, doctors, dentists, pharmacists and other healthcare providers in the country and is comprised of over 1,000,000 medical professionals that belong to such PPOs as CareMark and Aetna. The company’s primary target customer group is the 47 million Americans who have no health insurance of any kind. The company’s secondary target customer group includes the 61 million Americans who lack complete health insurance coverage. The company is headquartered in Horsham, Pennsylvania. For more information on the company, please visit its website at www.nationalhealthpartners.com.
Safe Harbor Provision
This press release contains “forward-looking statements” 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. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the company’s future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “may,”"will,”"expects,”"intends,”"plans,”"projects,”"estimates,”"anticipates,” or “believes” or the negative thereof or any variation thereon or similar terminology or expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the company’s expectations include, but are not limited to, its ability to fund future growth and implement its business strategy, its ability to develop and expand the market for its CARExpress membership programs, demand for and acceptance of its CARExpress membership programs, its dependence on a limited number of preferred provider organizations and other provider networks for healthcare providers, as well as those factors set forth in the company’s most recently filed Annual Report on Form 10-KSB and its other filings and submissions with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the company assumes no obligation to update or revise any of the information contained in this press release.