Comprehensive Care Corporation Announces Nine Month Revenues Top $54 Million, up 212 Percent

^{Published on 2011-11-21 02:41:12 - Market Wire}
 

Comprehensive Care Corporation Announces Nine Month Revenues Top $54 Million, up 212... -- TAMPA, Fla., Nov. 21, 2011 /PRNewswire/ --

TAMPA, Fla., Nov. 21, 2011 /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., is pleased to announce that its revenues for the nine months ended September 30, 2011 increased 212 percent to $54,039,000 compared to $17,344,000 for the same period in 2010.

Revenues for the three months ended September 30, 2011 totaled $17,200,000, up 118 percent compared to revenues of $7,901,000 in the same period in 2010.

"We are delighted by this significant increase in revenues," said Clark Marcus, CompCare's Chairman and Chief Executive Officer.  "A year ago, the Company's revenues for the nine-month period ended September 30, 2010 were up 66% from the same nine-month period in 2009.  The entire two-year period of 2009 to 2011 represented a material transition and growth time for the Company during which the Company not only maintained full staff but added significant executive personnel in order to position the Company for profitability.  By successfully increasing the Company's business and adding top-line revenue, we believe the Company is on the track to achieve sustainable profitability in 2012, and we look forward to continuing to announce this progress to our investors."  The entire 10-Q filing is available at [ www.sec.gov ].

CompCare's revenues are obtained through managed care activities, the majority of which are performed under the terms of at-risk agreements with health maintenance organizations and other health plans or payers to provide contracted behavioral healthcare services to subscribing participants. Revenue under a substantial portion of these agreements is earned monthly based on the number of qualified participants regardless of services actually provided.  This is generally referred to as at-risk arrangements.  

Under certain behavioral health contracts CompCare also manages the psychotropic drug benefit for the health plan's subscribing participants and is responsible for the cost of drugs dispensed.  Pharmacy drug management revenue is recognized monthly at a contracted rate per eligible member.  In accordance with the contracts, the health plan's pharmacy benefit manager performs drug price negotiation and claims adjudication.

About CompCare:

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.  For more information, please call 813-288-4808 or visit our website at [ www.compcare.com ] .  

Forward-Looking Statements

Except for statements of historical fact, the matters discussed in this press release, including but not limited to our ability to achieve profitability and the trend of our operating results towards profitability, 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 are available on its website at [ www.sec.gov ].

Investor Contacts:
Paul Knopick
E & E Communications
[ pknopick@eandecommunications.com ]
949.707.5365

SOURCE Comprehensive Care Corporation

RELATED LINKS
[ http://www.compcare.com ]