PHNS Pays $100M To Its Hospital Partners

Dallas, TX - PHNS Inc. announced that it has completed the payment of an additional $4M to its hospital partners McLaren Health Care Corporation, Flint, MI; General Health System; Baton Rouge, LA; and Adventist HealthCare, Inc., Rockville, MD. This brings the total that PHNS has paid in cash to its hospital partners to $95,500,000 during the past six years.

PHNS is unique among hospital services providers since it enters into partnerships with hospital systems in which PHNS pays cash and stock as payment for becoming PHNS hospital partners, and provides its hospital partners with cash payments annually for their share of cost savings produced by PHNS. PHNS' hospital partners own 20% of its stock and make up 40% of its Board of Directors.

"Delivering almost $100,000,000 to our not-for-profit hospital partners in only six years shows the power and huge potential of PHNS' innovative hospital partnerships", said Chick Young, Chairman and CEO of PHNS. "And we'll deliver even more cash to our hospital partners in the future through their PHNS stock ownership and their ongoing share in cost savings." Mr. Young added that "the nearly $100,000,000 of cash payments does not include the tens of millions of cost avoidance dollars that PHNS has saved for its hospital partners through our tough negotiations for reduced vendor prices on hardware, software and other big ticket expenditures."

Phil Incarnati, CEO of McLaren Health Care Corporation, stated, "Our PHNS relationship is about results. All of PHNS' service and financial promises have been kept—in fact more than kept."

Bill Holman, CEO of General Health System, said, "Our partnership with PHNS has reduced our costs, improved our service, and provided millions of dollars in cash that we've reinvested in our growing hospital."

Bill Robertson, CEO of Adventist HealthCare, Inc., added, "Our partnership with PHNS has resulted in improved IT services and millions of dollars in cash for our organization."

SOURCE: PHNS Inc.