Orion HealthCorp Announces Settlement Agreement
15 September 2006 - 2:22AM
Business Wire
Orion HealthCorp, Inc. (AMEX: ONH) today announced that it,
together with three of its shareholders, one of its directors and a
former officer, who were also defendants, had entered into a
settlement agreement (the "Agreement") regarding a previously
disclosed lawsuit, Cause No. 2005-44326, which was filed in the
80th Judicial District Court of Harris County, Texas, on July 12,
2005, by American International Industries, Inc. By entering into
the Agreement, neither Orion HealthCorp nor the other parties
admitted guilt or wrongdoing of any kind. Under the terms of the
Agreement, American International Industries, Inc. will receive
$750,000, paid primarily by various insurance carriers. As a part
of the Agreement, the parties agreed to mutual releases from all
claims. The plaintiffs had been seeking $7.6 million in damages and
other relief. Terrence L. Bauer, chief executive officer of Orion
HealthCorp, said, "We are pleased to have reached an agreement that
we believe is in the best interest of our company and its
shareholders, especially since the litigation was originally filed
against SurgiCare, a predecessor company to Orion. While the
portion of the consideration to be paid by Orion HealthCorp's
insurance company is expected to have little or no impact on the
Company's operations, the signing of this agreement eliminates the
distractions that come with any litigation and allows all parties
involved to get back to focusing on adding value to their
respective businesses." Orion HealthCorp, Inc. provides
complementary business services to physicians through two wholly
owned subsidiaries: Integrated Physician Solutions, Inc., providing
business and management services to physician practices; and
Medical Billing Services, Inc., providing physician billing and
collection services and practice management solutions to
hospital-based physicians. The core competency of the Company is
its long-term experience and success in working with and creating
value for physicians. For more information on Orion HealthCorp,
Inc., visit the Company's website at www.orionhealthcorp.com.
Certain statements in this press release constitute
"forward-looking statements" within the meaning of the Securities
Act of 1933, as amended, and the Securities Exchange Act of 1934,
as amended (the "Acts"). Any statements contained herein that are
not statements of historical fact are deemed to be forward-looking
statements, including all statements regarding improving financial
metrics and future growth. The forward-looking statements in this
press release are based on current beliefs, estimates and
assumptions concerning the operations, future results, and
prospects of Orion HealthCorp, Inc. and the other companies
described herein. As actual operations and results may materially
differ from those assumed in forward-looking statements, there is
no assurance that forward-looking statements will prove to be
accurate. Forward-looking statements are subject to the safe
harbors created in the Acts. Any number of factors could affect
future operations and results, including without limitation,
changes in federal or state healthcare laws and regulations and
third party payer requirements, changes in costs of supplies, the
loss of major customers, labor and employee benefits, an inability
to obtain a forbearance on the Company's revolving lines of credit
as a result of the Company's default of its financial covenants,
increases in interest rates on the Company's indebtedness as well
as general market conditions, competition and pricing, and the
Company's ability to successfully implement its business
strategies, including the impact and expense of any potential
acquisitions and the ability to obtain necessary approvals and
financing. Orion HealthCorp, Inc. undertakes no obligation to
update publicly any forward-looking statements, whether as a result
of new information or future events.
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