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Nashville, Tennessee (February 24, 2000) -- Renal Care Group, Inc. (Nasdaq/NM:RCGI) and Renal Disease Management by Physicians, Inc. (RDM) announced today that they have signed a definitive agreement to merge. RDM operates six dialysis centers in Northeast Ohio and Western Pennsylvania, serving more than 500 patients with end stage renal disease. The merger is expected to add more than $20 million to Renal Care Group's consolidated revenues for calendar year 2000. The transaction will be a tax-free exchange of stock and will be treated as a pooling-of-interests for accounting purposes. Terms were not disclosed.
Dr. Chester A. Amedia, president and chief executive officer of Renal Disease Management by Physicians, Inc., said, "We are excited about the opportunity to affiliate with Renal Care Group for the care of RDM's patients in Northeastern Ohio and Western Pennsylvania. Our decision to affiliate with Renal Care Group was based, in large part, on a shared vision of the important role of nephrologists in determining the future treatment of renal disease."
Dr. Raymond Hakim, executive vice president and chief medical officer of Renal Care Group, Inc., said, "The merger with RDM provides us with an opportunity to work with other nationally recognized nephrologists and expand our presence in the Ohio market where we already have a strong presence through our affiliation with the Cleveland Clinic Foundation and the MetroHealth system. This merger is in line with our long-term objectives at Renal Care Group, namely an affiliation that strengthens our physician-driven heritage and expands our presence in existing markets to enhance our ability to provide cost-effective optimal care."
Renal Disease Management by Physicians, Inc. is a physician-owned and directed dialysis provider and renal disease management organization that develops physician networks to manage the significant costs of care for individuals with ESRD using innovative disease management methods.
Renal Care Group, Inc. is a nephrology services company that focuses on providing care to patients with kidney disease, including patients suffering from chronic kidney failure. The Company treats approximately 14,500 patients through 181 owned outpatient dialysis facilities in 23 states, in addition to providing acute dialysis services in 103 hospitals.
Certain statements in this press release constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect management's expectations and are based upon currently available information. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements of Renal Care Group to differ materially from those expressed in or implied by the forward-looking statements. These factors are discussed in more detail in the Company's reports filed with the Securities and Exchange Commission, including without limitation Renal Care Group's annual report on Form 10-K for the year ended December 31, 1998, and the quarterly reports on Form 10-Q for the quarters ended March 31, 1999, June 30, 1999, and September 30, 1999. Copies of these filings are available from Renal Care Group upon request.
Contact:
R. Dirk Allison
Chief Financial Officer
615-345-5500
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