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.
About CompCare:
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 .
Forward-Looking Statements
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.
Investor Contacts:
Paul Knopick
E & E Communications
pknopick@eandecommunications.com
949.707.5365
SOURCE Comprehensive Care Corporation