HOUSTON, Sept. 24, 2001 (PRIMEZONE) -- SurgiCare, Inc. (AMEX:SRG), a Houston-based Ambulatory Surgical Center (ASC) provider, announced today that it has signed a Letter of Intent to develop and manage a Single Specialty Surgical Center to be located in Houston. The Facility will be comprised of 16 to 20 physicians specializing in endoscopy. This is the second Specialty Facility that SurgiCare has announced it will develop in Houston in the last month.
SurgiCare will be the General Partner with a minority ownership interest. It will realize revenues in the form of a development fee, a management fee equal to 5% of collections, and it's pro-rata share of any partnership distributions. The Company has already selected a building and architectural design work has begun. The Facility is expected to be operational in the first quarter of 2002.
"We anticipate that this Facility will be extremely profitable," said Charles S. Cohen, Co-Chief Executive Officer and COO of SurgiCare. "We believe that the combination of high volumes of procedures and low out-of-pocket costs will create substantial margins."
About SurgiCare, Inc.
SurgiCare, Inc., offers licensed, freestanding Ambulatory Surgery Centers, and specialty hospitals 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, which do not require overnight hospitalization after the surgery. The ASC's 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. 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 expression. 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.