EXHIBIT 20
COLUMBIA/HCA NEWS
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Healthcare Corporation (NYSE: COL)
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Contact: FOR IMMEDIATE RELEASE
INVESTOR CONTACTS: MEDIA CONTACTS:
Victor L. Campbell, Columbia Jeff Prescott, Columbia
(615) 344-2053 (615) 344-5708
Chris Byrd, Value Health Judy Hyfield-Starr, Value Health
(860) 678-3419 (860) 678-3472
COLUMBIA AND VALUE HEALTH ANNOUNCE PLANNED $1.3 BILLION MERGER
NASHVILLE, Tenn. and AVON, Conn., Jan. 15, 1997 - Columbia/HCA
Healthcare Corporation (NYSE:COL) and Value Health, Inc. (NYSE: VH) today
announced a definitive agreement to merge the companies in a $1.3 billion tax-
free, stock-for-stock transaction. It is anticipated that the proposed merger
will be accounted for as a pooling-of-interests.
The proposal calls for Value Health, a $1.9 billion specialty healthcare
services company, to merge with a subsidiary of Columbia. Each Value Health
stockholder will receive .58 shares of Columbia common stock in exchange for
each Value Health share held. Through the merger, Columbia expects to issue
approximately 35 million shares of its common stock to Value Health
stockholders, bringing Columbia's total outstanding shares to approximately 716
million.
The proposed merger will include Value Health's four business units:
ValueRx, the nation's largest independent pharmacy benefit management company;
Value Behavioral Health, the nation's largest provider of managed behavioral
healthcare; Community Care Network/MedView, a workers' compensation and group
health network and cost management company; and Value Health Sciences, an
information technology company which develops disease management programs.
Following the merger, ValueRx and Columbia Pharmacy Solutions will be
combined, bringing total members to more than 28 million and adding more than
2,500 commercial and wholesale customers. ValueRx manages approximately $2.2
billion of pharmaceutical purchases through its retail and mail-order pharmacy
operations and represents approximately $500 million of pharmaceuticals
annually.
Value Behavioral Health provides services to more than 20 million
members through contracts with 1,000 private and public-sector companies.
Columbia is a leading provider of behavioral health with 147 locations.
Community Care Network/Med View will combine with Columbia's OneSource
Health Network, a group health and workers' compensation network. The combined
organization will provide service to approximately 4 million group health and 25
million workers' compensation members. Value Health Sciences will expand
Columbia's outcomes measurement and best demonstrated practices programs.
-more-
COLUMBIA/VALUE HEALTH -- 2
"Value Health fits well into Columbia's integrated delivery system and
increases our ability to be a full service provider of healthcare services for
our patients and customers," said Richard L. Scott, Chairman and Chief Executive
Officer of Columbia. "With more than 50 million members in its general medical,
mental health, prescription drug, and workers' compensation network
arrangements, Value Health will provide an important component of Columbia's
comprehensive healthcare solution."
"As we seek to secure our company's future place in the tumultuous
healthcare industry realignment, we looked to Columbia as a company that uses
its size to the benefit of patients, communities, employees and shareholders,"
said Robert Patricelli, Chairman and Chief Executive Officer of Value Health.
"Columbia offers us new markets for our products, an innovative environment that
will foster continued growth, and a demonstrated record of success in quality
improvement, cost control and performance measurement."
The merger requires approval of Value Health stockholders and clearance
under the Hart-Scott-Rodino Antitrust Improvements Act and other customary
conditions. It is anticipated that the merger will be complete by mid-1997.
Value Health, Inc. is a provider of specialty care benefit programs to
large corporations, insurance carriers, managed care organizations, and federal,
state and local governments. The company's businesses include: pharmacy benefit
management; mental health and substance abuse management; workers' compensation,
disability and group health management; and disease management.
Columbia is the nation's largest provider of healthcare services with
facilities in 37 states, England and Switzerland. Columbia's networks include
344 hospitals, 135 surgery centers, more than 550 home health locations and a
nationwide pharmacy benefit management company. The company is building
comprehensive networks of healthcare services, including home health,
rehabilitation and skilled nursing units, in local markets around the country.
In 1996 Columbia and its more than 285,000 employees and 75,000 affiliated
physicians provided more than 40 million patient visits.
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Columbia's address on the World Wide Web is http://www.columbia.net