Priority Healthcare Resolves Contract Dispute
December 13 2004 - 1:16PM
PR Newswire (US)
Priority Healthcare Resolves Contract Dispute LAKE MARY, Fla., Dec.
13 /PRNewswire-FirstCall/ -- Priority Healthcare Corporation
(NASDAQ:PHCC) announced that it has resolved its previously
disclosed dispute with one if its payor customers. As disclosed in
the company's July 3, 2004 and October 2, 2004 Form 10-Qs, a payor
contacted the company claiming that one of the company's
subsidiaries was not in compliance with certain provisions of the
payor's contract going back to 1997. The payor demanded $8.6
million in overcharges and threatened to terminate that
subsidiary's participation in the payor's network. The company has
agreed to settle the dispute and pay a total of $4.2 million over a
period of approximately one year. The company will be expensing the
settlement and the related costs of the settlement as a one-time
charge in the quarter ending January 1, 2005. "We are pleased to
have this dispute behind us, as we have had a strong relationship
with this payor over the past several years," stated Steve Cosler,
President and Chief Executive Officer. "We look forward to
continuing a mutually beneficial relationship in the future." About
Priority Healthcare Corporation Priority Healthcare Corporation is
a national specialty pharmacy and distributor that provides
biopharmaceuticals, complex therapies, and related disease
treatment services. Priority Healthcare provides comprehensive
programs for patients, payors, physicians, and pharmaceutical
manufacturers for a growing number of disease states including
cancer, hepatitis C, respiratory and pulmonary conditions,
infertility, rheumatoid arthritis, hemophilia, multiple sclerosis,
Parkinson's disease, and macular degeneration. Additional
information regarding Priority Healthcare is available online at
http://www.priorityhealthcare.com/ . Certain statements included in
this press release, which are not historical facts, are
forward-looking statements. Such forward-looking statements are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. These forward-looking
statements represent our expectations or beliefs and involve
certain risks and uncertainties, including those described in our
public filings with the United States Securities and Exchange
Commission; also including, but not limited to, changes in interest
rates, competitive pressures, changes in customer mix, changes in
third party reimbursement rates, financial stability of major
customers, changes in government regulations or the interpretation
of these regulations, changes in supplier relationships, growth
opportunities, cost savings, revenue enhancements, synergies and
other benefits anticipated from acquisition transactions,
difficulties relative to integrating acquired businesses, the
accounting and tax treatment of acquisitions, and asserted and
unasserted claims, which could cause actual results to differ from
those in the forward-looking statements. The forward-looking
statements by their nature involve substantial risks and
uncertainties, certain of which are beyond our control, and actual
results may differ materially depending on a variety of important
factors. You are cautioned not to place undue reliance on these
forward-looking statements that speak only as of the date herein.
http://www.newscom.com/cgi-bin/prnh/20030417/PHCLOGO
http://photoarchive.ap.org/ DATASOURCE: Priority Healthcare
Corporation CONTACT: Stephen Saft, Chief Financial Officer of
Priority Healthcare Corporation, +1-407-804-6700 Web site:
http://www.priorityhealthcare.com/
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