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Nashville, Tennessee (May 10, 2001) — Renal Care Group, Inc. (Nasdaq/NM: RCGI)
today announced that it had received notice at 10:00 a.m. Central Time
that Amgen Inc has raised the price of EPOGEN® by 3.9% effective May 9,
2001. This price increase will not affect Renal Care Group in 2001
because the Company's contract with Amgen has pricing protection for 2001.
If the Company is not able to mitigate the full impact of this price increase
in 2002, it could reduce earnings per share in 2002 by between $0.05 and
$0.07.
Sam A. Brooks, chairman and chief executive officer of Renal Care Group, said "Quite frankly, we are disappointed that Amgen once again announced a price increase before notifying us. We believe Amgen's price increases, coupled with the government's failure to take them into account in setting the reimbursement rate for EPO, hurt dialysis patients as well as dialysis providers and payors."
Renal Care Group, Inc. is a dialysis services company that provides care to patients with kidney disease. The Company currently treats approximately 17,000 patients through 209 owned outpatient dialysis facilities, in addition to providing acute dialysis services to more than 112 hospitals. Over 5,000 associates provide services across the Company's 25-state network.
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, including risks related to: compliance with health care and other applicable laws; the integration of acquired companies; changes in the Medicare and Medicaid programs; risks related to EPO; payment reductions by private insurers, hospitals or managed care organizations; and changes in the health care delivery, financing or reimbursement systems. These and other factors affecting the company are discussed in more detail in Renal Care Group'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, 2000. 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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