| Birman Managed Care, Inc. | |||
| Ticker: | BMAN | 502 Gould Drive | |
| Exchange: | NASDAQ-Small Cap Market | Cookeville, TN 38506 | |
| Industry: | Service (SIC Code 8742) | (615) 432-6532 | |
| Type of Shares: | Common Shares | Filing Date: | 9/13/96 | |
| U.S. Shares: | 2,000,000 | Offer Date: | 2/12/97 | |
| Non-U.S. Shares: | 0 | Filing Price: | $5.00 | |
| Primary Shares: | 2,000,000 | Offer Price: | $5.00 | |
| Secondary Shares: | 0 | Gross Spread: | $0.40 | |
| Offering Amount: | $10,000,000 | Selling: | $0.20 | |
| Expenses: | $1,010,000 | Reallowance: | $0.10 | |
| Shares Out After: | 8,481,082 |
| Manager | Tier | Phone |
| Royce Investment Group, Inc. | Lead Manager | (516) 393-8300 |
| Continental Broker-Dealer Corp. | Co-manager |
| Issuer's Law Firm: | Rudnick & Wolfe |
| Bank's Law Firm: | O'Connor, Cavanagh, Anderson, Westover |
| Auditor: | BDO Seidman |
| Registrar/Transfer Agent: | American Stock Transfer & Trust Co |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 6/30/96 | 6/30/96 | ||||
| Revenue: | $8.42 | Assets: | $4.01 | ||
| Net Income: | $1.17 | Curr Assets: | |||
| EPS: | $0.15 | Liabilities: | $0.82 | ||
| Prior EPS: | -$0.09 | Curr Liabilities: | |||
| Cash Flow/Oper: | Equity: | $3.19 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is a health care consulting and management company dedicated to improving quality, controlling the cost, and enhancing the efficiency of the management and deliver of health care system. In pursuing these goals, the company currently provides its proprietary "Quality Management Program" to hospitals to educate their medical staffs on patient management. As an expansion of its business, the company is developing and will operate various managed care health programs in association with physician networks, hospitals, and other health care services in managed care systems. As part of its health plan business, the company will organize physicians into independent practice association, or networks, that will provide services to the company's health plans as well as independent health plans. The company concentrates its efforts on rural communities, particularly in the south-central, southeast, and central United States, with an initial focus for its health plans on Mississippi and Tennessee, where the development of managed care programs has lagged behind other areas of the country. |
| Competition |
| Although its Quality Management Program services are significantly different from those offered by other hospital consulting services, the company competes from consulting business primarily with revenue-optimization service companies. Approximately 500 to 700 companies of varying size offer revenue-optimization services that may be considered competitive with the company. Competitors include the health care consulting practice groups of Andersen Consulting, the Gailer Review Group, Health Care Management Advisors, Inc., Iameter, MC Strategies, Inc., National Coding Service, Inc., Quality Medical Consultants, Inc., and J.A. Thomas & Associates. Most of these firms have substantially greater financial, technical, marketin, and management resources than the company. The managed care industry is highly competitive. The company's health plans will compete with other providers of helth care services, including regional hospitals and phsycian practice groups. Competitors include large indemnity insurers with established managed care operations, such as Aetna, Blue Cross Blue Shield, CIGNA, and Prudential; HMOs, such as U.S. health Care, Humana, Kaiser Permanente, and Quorum; physician management companies, such as MedPartners/Mulliken; and physician sponsored organizations. Many competitors offer a broader range or health care services than the company's health plans will offer, have extensive relatioships with group specialty practices, and have financial, managerial, marketing, and technical resources that are much greater than those of the company. |
| Business Plan |
| The company's strategy is to build on the strong reputation, health care and management experience, and market position of its Quality Management Program to further expand that consulting business and to penetrate rapidly the managed care segment of the industry. The company plans to employ the following strategies to reach these objectives: (I) Focus on Rural Market, (ii) Focus on the Role of the Physician, (iii) Develop New Quality Management Program Clients and Services and (iv) Launch Health Plans Applying the Quality Management Experience. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to develop, establish, and expand its health plans; establish reserves in furtherance of its health plans; complete an acquisition; expand its Quality Management Program; and provide working capital and for general corporate purposes. |