Accordant Health Services Achieves Profitability:
Proven Disease Management Model Drives Sustainable Financial Strength · New Contracts Drive Company Growth · CEO Schelhammer on Panel at JPMorgan H&Q Healthcare Conference, January 7, 2002
(PRWEB) January 20, 2002
FOR IMMEDIATE RELEASE:
GREENSBORO, N. C. - January 2002 - Building for six years on its core business model of population-based disease management (DM) services for a constellation of complex, chronic diseases and capitalizing on health plan receptivity, Accordant Health Services (AHS) announces it reached profitability as of October 2001, posting positive cash flow and profitability for the full Q4 2001.
"Accordant's underlying patient-centric DM model is vigorous and sustainable, powered by proven methodologies and documented value," says Steve Schelhammer, president and CEO of Accordant. "As a profitable company with very strong cash reserves, Accordant is positioned for continued leadership as it pioneers the next generation of DM."
Accordant prides itself on organic, self-funded growth following the February 2000 $14 million private equity placement led by J. P. Morgan Partners. Bruce Crosby of J. P. Morgan Partners comments, "Led by its strong senior management team, Accordant has continued to solidify its position as one of the leading disease management companies in the industry. Accordant's recent announcements regarding new contracts and impressive disease management outcomes illustrate its leadership position. We believe that Accordant will continue to fulfill a much-needed role in our healthcare system by providing exemplary, value-added disease management services on behalf of patients, payers and physicians."
Schelhammer is participating on the Disease Management - The Next Generation of Medical Management Panel at the 20th Annual Healthcare Conference hosted by JPMorgan H&Q, January 7-10, 2002, in San Francisco, Calif. The JPMorgan H&Q Healthcare conference is the leading financial services-sponsored healthcare conference covering all key sectors of the healthcare industry including pharmaceuticals, biotechnology, medical supplies and devices, hospital management, long-term care, managed care and drug distribution.
Market Expansion
Tom Frosheiser, Accordant Chief Financial Officer, states, "Our profitable status is indicative of the success of the company, its rock solid position and prospects for sustained growth. Over the past six years, Accordant has invested considerable time and resources to establish the requisite infrastructure and intellectual property to meet the increased demand in the DM marketplace."
Accordant programs have exceeded the expectations of early health plan adopters, many of which have significantly expanded their contractual relationships with Accordant and fueled the development of new programs and services.
"An expanded relationship with Humana dwarfs the scope of the original contract," says Frosheiser. "In 1998, Humana shared our commitment to population-based DM, and the recent contract expansion is testimony to the success of the program." He also points to the addition in Q4 2001 of a fourth Blues plan to Accordant's customer base as further demonstration of market acceptance.
Buoyed by demand for increased services with the addition of six new managed care contracts signed in the past eight months, Accordant will expand its service offerings and expects to increase its workforce by 25 percent or more. "Accordant has successfully found the necessary combination of price, value and corresponding cost structure to ensure continued profitable growth. We expect our revenues to triple by next year, with two thirds of that target already under contract," adds Frosheiser.
Accordant Program Evaluation Methodologies Earn Industry Recognition
Another key driver of business development is the unveiling of Accordant program evaluation methodologies which advance scientifically grounded clinical/financial formulas to document disease management outcomes and value. Pioneering these new methodologies, which drew industry acclaim at a recent Disease Management Association of America (DMAA) conference, Accordant has established its leadership role in refining the standardization of DM methodologies and reporting measurements.
According to David Krause, senior economic analyst at Accordant, "When current clients and potential customers see these methodologies, they recognize the intrinsic value of the Accordant approach and tell us they would like to see more reporting using these techniques."
Krause credits these methodologies for analyzing DM outcomes as an important factor in business expansion. "People with complex chronic diseases are often the sickest patients and account for the largest healthcare plan expenditures. Accordant programs generate demonstrable outcomes using methodological rigor that combines traditional financial and clinical epidemiological concepts and tools. This rigor adds further credibility to our demonstrated outcomes and results."
These methodologies are elevating the understanding of DM outcomes to a new level of sophistication and reliability and are stimulating greater acceptance of Accordant's DM programs by MCO customers nationwide. "Accordant continues to generate and document cost efficiencies for health plans accompanied by strong patient satisfaction levels. This is a powerful combination that transforms skeptics into believers," concludes Krause.
Leaders with Vision
The Accordant management team has carefully steered the company, bringing it to a profitable status. Schelhammer credits senior staff members, acknowledging their dedication to customer centricity and their seasoned business acumen.
"We are reaping the benefits that derive from a well-run team that meets business challenges with viable solutions for near - and long-term success," asserts Schelhammer. "Our disciplined approach has led to enhanced corporate positioning and impressive growth opportunities. The entire organization works collaboratively to meet clearly defined fiscal goals while addressing the ongoing needs of Accordant's patient populations.
"Accordant leadership is committed to furthering the influence of the DM industry as it partners with the managed care community to improve patient health," concludes Schelhammer.
About Accordant
Accordant, based in Greensboro, N. C., focuses on assisting patients who have complex chronic diseases with the goal of improving clinical, patient satisfaction, and cost-of-care outcomes. The company relies on its expert "Tele-Web" system that integrates Internet and call-center technologies to enable flexible, intelligent and customized information sharing among patients, providers and health plans. Accordant is a leader in population-based disease management for a constellation of complex, chronic diseases including multiple sclerosis, Lupus, Parkinson's, rheumatoid arthritis, hemophilia, cystic fibrosis, and sickle cell anemia. Accordant has supported over 20,000 chronic patients whose participation has been sponsored by their health plan. Accordant's Medical Advisory Board is comprised of national medical experts who participate in the development and continuous quality improvement of the company's programs. For more information about Accordant, visit www. accordant. com or call 1-800-948-2497.
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Jerry Schranz
CPRi Communications, Inc.
PR for Accordant Health Services, Inc.
201-641-1911 Phone ext.14
Jschranz@cpronline. com
