CHARLOTTE, N.C., July 11, 2005 (PRIMEZONE) -- PACEL Corp. (OTCBB:PCCR) announces that its AsmaraHR operating unit has been designated as the exclusive vendor for human resource outsourcing functions by the National Association for Subacute and Post Acute Care (NASPAC).
NASPAC is a national association of elder care facilities whose mission is to collaboratively work with industry providers and professionals, and public and private policy makers, to assure access to quality health care that is adequately reimbursed. NASPAC recognizes that intense cost pressures are impacting the elder care industry, including in these critical areas: severe labor shortages, particularly with licensed nurses and Certified Nursing Assistants; professional liability costs becoming prohibitive; and the many cost and other ramifications of responding to the rapidly changing and punitive regulatory environment
NASPAC has asked AsmaraHR to help it solve several significant issues impacting its members. AsmaraHR has agreed to develop a workers' compensation program which is tailored to NASPAC's needs, to develop a specific risk and safety program and to develop a human resource program designed to improve the HR functions of the members.
According to American Association of Homes and Services for the Aging, there are over 16,000 elder care facilities with in excess of 1.8 million beds. Each facility has an average of 53 direct employees plus the indirect staff, making this a very labor-intensive industry. Demand for elder care facilities is driven by an aging population. The U.S. population of 65 and older will increase an average of 26% between 2005 and 2015. Elder care facilities are forecasted to grow at a compounded rate of 5.5% between 2004 and 2007 and are expected to be one of the fastest growing segments of the health care industry.
Gary Musselman, President of PACEL Corporation, commented, "We are pleased to have received the endorsement of an organization as large and well-respected as NASPAC and to have achieved this designation of AsmaraHR as exclusive vendor for outsourced Human Resources, payrolls and tax filing services. By working together, AsmaraHR and NASPAC expect to make highly effective programs available to subacute and post-acute healthcare industry. We believe that this agreement with NASPAC will increase our presence in the growing elder care market, lead to significant revenues for AsmaraHR and add value to the company."
Cautionary Statement for the Purpose of Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995: Forward-looking statements in this news release are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Certain important factors could cause results to differ materially from those anticipated by forward-looking statements, including the impact of competition, the success of existing and new product releases, the management of our growth, other risk factors inherent in the Internet, and extreme sports industries, and other factors discussed from time to time in reports filed by the company with the Securities and Exchange Commission.