Reston, July 28: PHP Healthcare Corp said on Monday it expects to take a fiscal 1998 pre-tax charge of up to $15 million as it discontinues certain operations and has requested a two-week extension to file its financial results for the year ended April 30.In a statement, the medical management company said the charge is expected as it discontinues contracts in several states to focus on its HMO business in New Jersey, Medicaid HMO services in the Mid-Atlantic area and employer-based managed care operations.
The company said it needed to file for an extension with the Securities and Exchange Commission because of the amount of time required of management and auditors during May and early June to finalise a common stock registration statement declared effective by the SEC on June 10.
PHP expects to release its year-end results on or before August 12.During its fiscal 1998 year, PHP acquired clinical operations in New Jersey and assumed responsibility for providing healthcare to around 200,000 HMObeneficiaries in the state of New Jersey under a 20-year global capitation agreement.
The company said this agreement is now responsible for ``a significant portion'' of its annual revenues.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
Printer-friendly page
