2004 NOV 15 - (NewsRx.com & NewsRx.net) -- PHC, Inc., d.b.a. Pioneer Behavioral Health (BULLETIN BOARD: PIHC), announced that its Harmony Healthcare subsidiary has successfully negotiated an expansion of the contract with its largest Nevada payor, PacifiCare of Nevada.
Under the terms of the expanded contract, Harmony will provide additional value-added behavioral health services for PacifiCare's Secure Horizons members.
The contract specifies a rate increase for the approximately 24,000 Medicare Advantage program members (formerly the Medicare + Choice program) currently enrolled in the Secure Horizons program. Harmony expects approximately $150,000 in annualized new revenues from this expanded contract.
Bruce A. Shear, Pioneer Behavioral Health's president and chief executive officer, commented, 'This announcement represents another step in our national expansion strategy, and an important announcement for the citizens of the greater Las Vegas metropolitan area. Over the last 7 years, Harmony and PacifiCare have developed an outstanding, mutually beneficial relationship, with Harmony as a leading provider of behavioral healthcare services for PacifiCare's health management, point-of-sale and Secure Horizons plans.'
Shear continued, 'With Harmony's already-strong presence in the Las Vegas area, this contract expands our mark in that region, which is an important step for our growth strategy. Expanding our footprint in the rapidly growing Las Vegas region, one of the fastest growing metro areas in the country, is an important step for our growth strategy.'
The company also recently announced it has secured an expanded line of credit, secured with its accounts receivables, totaling $3.5 million. The line of credit is provided by CapitalSource Finance LLC, and replaces Pioneer's former bank.
Shear commented, 'This new, expanded line of credit will provide the additional working capital to allow us to achieve our previously announced revenue growth strategy, including the recently announced expansion of our subsidiary, Detroit Behavioral Institute, Inc. at the Detroit Medical Center. As a specialty lender with a focus on healthcare, CapitalSource Finance is a proven partner in debt and equity financings, and we look forward to a mutually productive relationship going forward.'
CapitalSource is a specialized commercial finance company offering asset-based, senior, cash flow and mezzanine financing to small and mid-sized borrowers through three focused lending groups: Corporate Finance, Healthcare Finance and Structured Finance.
PHC, Inc., d.b.a. Pioneer Behavioral Health (BULLETIN BOARD: PIHC) is a provider of inpatient and outpatient behavioral health services and pharmaceutical research.
This article was prepared by Health & Medicine Week editors from staff and other reports. Copyright 2004, Health & Medicine Week via NewsRx.com & NewsRx.net.
