For new investors can you give an overview of the Company services and where you have locations?
A: Clark Marcus, Chairman and CEO
We provide managed behavioral healthcare, substance abuse, and pharmacy management services. We provide these services primarily to commercial, Medicare, Medicaid and Children's Health Insurance Program ("CHIP") health plans. Additionally we provide pharmacy and analytic services for our health plan clients to integrate medical claims data and pharmacy data into actionable information so patient care can be coordinated cost effectively. Our managed care operations include at-risk behavioral health contracts, at-risk pharmacy management contracts, and administrative service agreements.
We have also recently launched a cost containment pharmacy management program designed to lower our clients total annual pharmacy spend by at least 10%. Under this unique and innovative program for the industry, we will enter into at-risk pharmacy management agreements whereby we guarantee our client's savings over their previous year's pharmacy spend.
We service clients in 22 states, the District of Columbia and Puerto Rico, with primary offices/facilities located in Tampa, Florida and San Juan, Puerto Rico.
Q: Investorideas.com staff
In terms of payments for patient care can you give us an idea of how you are compensated and if the recent and pending changes in healthcare in the US will impact your company moving forward?
A: Clark Marcus, Chairman and CEO
We typically enter into contracts on an annual basis, which evergreen every one or two years. Our arrangements with our clients fall into two broad categories:
- At-risk arrangements under which our clients pay us a fixed fee per member per month in exchange for our assumption of the financial risk of providing behavioral health and/or pharmacy management services; and
- ASO arrangements where we manage behavioral healthcare programs or perform various managed care services, such as clinical care management, provider network development, and claims processing without assuming financial risk for member behavioral healthcare costs.
Q: Investorideas.com staff
Your Company recently reported six month results for 2012 that are impressive for a small OTC Company. Can you give investors a snapshot of the results?
A: Clark Marcus, Chairman and CEO
For the first time in many years, we have been profitable for two consecutive quarters.
In the second quarter, ended June 30, 2012, we earned $1.6 million while losing almost $4 million in the comparable quarter last year. Revenues for the quarter reached $18.2 million, compared with $18.6 million in the same period of 2011, or a slight decrease of less than 2%.
Several new profitable contracts in the behavioral healthcare segment, a strict cost containment program and a contract amendment with a major Puerto Rican client all contributed to this substantial improvement.
Additionally, our recently launched innovative pharmacy cost containment program, which is able to reduce pharmacy costs for our healthcare customers by up to 10%, is expected to start generating revenues in a few months. Considerable growth is expected from this program in the following years.
Q: Investorideas.com staff
How does your Company fill the gap in current services for your sector and where do you see the future growth?
A: Clark Marcus, Chairman and CEO
Our pharmacy management contracts were up 18.9 percent, or $3.1 million, to $19.4 million in the first six months of 2012. Our strategies to reduce pharmaceutical costs for our clients will be a key element for our future growth.
Thus far, all of our substantial growth over the past two years has been organic in nature. However, it should not be a surprise if we started searching for some nice acquisitions.
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. 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 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 CompCare's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, the ability of CompCare to maximize its market share with new pharmacy initiatives, the success and profitability of the new pharmacy initiatives, our ability to reduce pharmaceutical costs by up to 10% for our clients under the new pharmacy initiatives, the ability of CompCare and its staff to execute its business plan to generate exponential growth, the ability of CompCare to offer and sell any of its products at a profit, 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 business, the profitability, if any, of our capitated contracts or other products, increases or variations in cost of care, seasonality, CompCare's ability to obtain additional financing, increased outsourcing of behavioral health services, and additional risk factors as discussed in the reports filed by the company with the Securities and Exchange Commission, which are available on its website at www.sec.gov. Any forward- looking statement in this release speaks only as of the date on which it is made. CompCare assumes no obligation to update or revise any forward-looking statements.
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