SOURCE: American CareSource Holdings, Inc.

December 21, 2006 14:36 ET

American CareSource Announces Major Client Expansion

DALLAS, TX -- (MARKET WIRE) -- December 21, 2006 -- American CareSource Holdings, Inc. (AMEX: XSI) announced today that its Ancillary Care Services subsidiary has expanded its existing relationship with HealthSmart Preferred Care (HSPC) to include American Administrative Group (AAG). Both HealthSmart Preferred Care and American Administrative Group are wholly owned subsidiaries of The Parker Group. HealthSmart Preferred Care has been a client of American CareSource Holdings, Inc. since December 2005.

This expansion will provide American Administrative Group's payor clients with access to the extensive Ancillary Care Services network of providers that offer attractive rates on a wide spectrum of ancillary care services. The company expects that this new relationship will substantially increase claim volume to the company. Based on initial analytics, the company estimates that this expansion will at minimum increase annual revenue by $8-$12 million dollars once it has been fully implemented. The company expects to begin implementation and recognize revenue within the first quarter of 2007.

About American CareSource Holdings, Inc.

American CareSource Holdings, Inc., the first national, publicly traded ancillary care benefit management company, is a comprehensive ancillary care service provider offering a national network of more than 21,000 ancillary providers. American CareSource Holdings, Inc.'s ancillary network management provides a complete outsourced solution for a wide variety of healthcare payors and plan sponsors including self-insured employers, indemnity insurers, PPOs, HMOs, third party administrators and both the Federal and local governments. Through its product offerings, American CareSource Holdings, Inc. offers its clients substantial discounts on services rendered through its network of ancillary care providers in more than 30 service categories.

Any statements that are not historical facts contained in this release are forward-looking statements particularly those statements related to potential annual billed revenue under the client implementation and the number of additional payors that may be added to the company's network. It is possible that the assumptions made by American CareSource Holdings, Inc. for purposes of such statements may not materialize. The client for which services are to be provided may terminate its agreement, providers may withdraw from the company's program or other factors may affect the ability of the Company to recognize any revenue in connection with their relationship. Such statements may involve further risks and uncertainties, including but not limited to those relating to product demand, pricing, market acceptance, the effect of economic conditions, and intellectual property rights, and the outcome of competitive products, risks in product development, the results of financing effort, the ability to complete transactions, and other risks identified in this release, and the Securities and Exchange Commission filings of American CareSource Holdings, Inc.

Contact Information

  • Contact:
    Wayne A. Schellhammer
    Chairman & Chief Executive Officer
    American CareSource Holdings, Inc.
    Tel. 972-308-6830