SOURCE: American CareSource

January 25, 2007 15:36 ET

American CareSource Holdings, Inc. Announces New Client Agreement

DALLAS, TX -- (MARKET WIRE) -- January 25, 2007 -- American CareSource Holdings, Inc. (AMEX: XSI) announced today that its Ancillary Care Services subsidiary has signed a letter of agreement with a major national PPO and network management company to provide ancillary care services to their client base.

Due to the multiple client relationships they administer and manage, and the competitive environment in which they operate, our new client has requested that their name remain confidential. The initial review of the relationship indicates that American CareSource Holdings could increase annual revenue by as much as $15-$20 million dollars once it has been fully implemented. However, the contract does not provide for any minimum level of claim volume. The implementation process has begun and the company expects to process claims in approximately 90 days for this new client.

About American CareSource Holdings, Inc. (ACS)

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 22,000 ancillary providers. The ACS ancillary network and 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. helps its clients reduce the cost of ancillary benefits 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