HOUSTON, July 25, 2001 (PRIMEZONE) -- SurgiCare, Inc. (AMEX:SRG), a Houston-based Ambulatory Surgical Center (ASC) provider, announced today that it has completed negotiations and has signed a definitive agreement with Cirrus Health Services, Inc., a builder of medical office buildings. Completion of the process not only clears the last hurdle for the opening of SurgiCare's fourth multi-purpose surgery center, but also paves the way for the company to develop and manage additional ASCs within the Cirrus medical buildings.
This partnership with Cirrus gives SurgiCare co-ownership in the soon-to-be-opened Bayside SurgiCare, a state-of-the-art ASC that will serve the Pasadena area of Houston. The joint agreement also provides for SurgiCare to help develop and then operate several more centers that Cirrus currently has in various stages of development throughout the Southwest United States.
"This has been a very busy month for us," said Dr. David Blumfield, CEO of SurgiCare Inc. "We made the successful transition to the American Stock Exchange a week ago, and have already garnered a whole lot of new attention within the investment community. But, we still managed to concentrate on our core business, we have worked out the details of the Cirrus agreement, and are continuing to work on other projects, which should allow us to keep up our rapid pace of expansion."
In just the past year, SurgiCare expanded its operations from one ASC to four freestanding surgery centers. The company has also continued its merger negotiations with Surgery Centers of America II, LLC, which currently has interests in nine working ASCs as well as a wealth of additional management infrastructure that could prove extremely valuable as SurgiCare continues its consolidation of the ASC market.
SurgiCare's newest center, Bayside SurgiCare, is located in Pasadena, Texas, a suburb of Houston. It has already passed its initial inspection with the Texas Department of Health, and has been assigned an operating license number. The center will have three operating theaters that will be utilized by local surgeons for a wide range of outpatient surgical procedures.
"Our new listing on the AMEX should go a long way in helping to build a wider awareness of SurgiCare and its superior business model. We have worked diligently over the last year to speed up the pace of our growth through selected acquisitions and joint ventures. The ASC market is a highly fragmented market and perfect for consolidation. Because of this, we expect to continue executing our plans to build SurgiCare into the nation's premier operator of first-class outpatient surgery facilities," continued Blumfield.
About Cirrus
Cirrus Health Services, Inc. has one existing medical office building and ASC in the Houston area and has also broken ground on a second building. The company currently has two more buildings in the planning stage. Cirrus recruits physicians and surgeons to set up practices in its buildings. These doctors become part owners of the building and perform procedures in its ASCs.
About SurgiCare, Inc.
SurgiCare, Inc. offers licensed, freestanding Ambulatory Surgery Centers for use by physicians and its physician partners and their patients. Freestanding refers to the fact that the facilities are physically and organizationally independent from a hospital. Ambulatory Surgery means surgical procedures that do not require overnight hospitalization after the surgery. The ASCs are run under the guidance of a committee of physician partners. SurgiCare's goal is to grow through mergers, acquisitions, and turnkey management contracts in conjunction with physician-involved supervision and potential equity participation within a public company model. SurgiCare has assembled a team of highly qualified industry professionals that is equipped to effectively manage multiple ASCs, essentially cutting operational costs and increasing profit margins. For more information on SurgiCare, please visit the company's Website at www.surgicareinc.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipates," or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of SurgiCare, Inc. (the Company) to differ materially from those expressed or implied by such forward-looking statements. Such factors include, among others, the risk factors contained in the Company's Annual Reports and other filings with the Securities and Exchange Commission. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the Company assumes no responsibility to update the information included herein for events occurring after the date hereof.