Comprehensive Care Corporation Announces Profit for First Quarter
TAMPA, Fla., May 22, 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., today announced that its revenues for the first quarter of 2012 ending March 31, 2012 totaled $17,890,000. Net income totaled $80,000 for the quarter.
"We are pleased to announce that CompCare achieved a profit, albeit modest, for its first quarter of 2012. This was an important goal for CompCare following completion of significant changes in our business structure and the streamlining and automation of key business functions," said Robert Kulbick, the Company's new president.
"We are especially pleased that our at-risk pharmacy contracts produced $9,597,000 in revenue in the first three months of 2012. The 19.8 percent increase over the first quarter of last year is attributable primarily to a 9.9 percent increase in members and a contract rate increase, effective Jan. 1, 2012, from our major customer in Puerto Rico for whom CompCare manages the psychotropic drug benefits," Mr. Kulbick explained. "We are also pleased that general and administrative costs decreased in the quarter to $515,000 compared to $1,161,000 in the same period in 2011."
"For the past two years, CompCare's management team has worked hard to improve the foundation of the Company, such that it can support substantial, profit oriented growth. We now offer services in 46 U.S. states, the District of Columbia, and Puerto Rico, compared to a much smaller number in 2009. We have recently launched the expansion of our drug management program on an at-risk basis to health plans and self insured entities to reduce their drug spend. Plus we have expanded our service provider network to approximately 35,000 providers. There is still much work to be done. However, we are proud of our progress and committed to further improving the Company's performance at all levels," Mr. Kulbick 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-Q 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 substantial, profit oriented growth, our ability to further improve the Company's performance at all levels and our ability to expand our drug management program on an at-risk basis 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.
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