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EXHIBIT 99.2
[MEDAPHIS LOGO]
INVESTOR CONTACT: CARYN DICKERSON
(770) 444-5348
MEDIA CONTACTS: MICHAEL SITRICK
(770) 444-5707
DONNA WALTERS
(800) 288-8809
MEDAPHIS ANNOUNCES SIX SENIOR EXECUTIVE APPOINTMENTS
AS PART OF MOVE INTO NEXT PHASE OF BUSINESS PLAN
ATLANTA, GEORGIA -- JANUARY 27, 1998 -- Medaphis Corporation (NASDAQ: MEDA)
today announced six senior executive appointments as part of the Company's move
into the next phase of its business plan. The appointments, which are intended
to broaden and strengthen the Company's management team, include an Executive
Vice President and Chief Operating Officer, an Executive Vice President and
Chief Financial Officer and four Senior Vice Presidents: Chief Information
Officer, Chief Compliance Officer, Human Resources and Marketing. Three of the
executives appointed to these positions come from within the Company.
Yesterday, the Company announced that it had received a commitment for a $100
million revolving credit facility as part of a new planned $250 million
financing package. The financing, which will return the Medaphis capital
structure to more traditional long-term debt, is contingent upon customary
conditions and completion of an offering of $150 million in senior notes
maturing in 2005. The financing package is expected to close by March 31, 1998.
C. James Schaper, 46, who has served as Executive Vice President of Medaphis
since March 1997 and leads its Per-Se Technologies operations, retains those
responsibilities in addition to others he is taking on in his new role as Chief
Operating Officer for Medaphis Corporation. Allen W. Ritchie, 40, whose
experience includes serving as President, Finance and Administration of AGCO
Corporation, headquartered in Atlanta, GA, joins the Company as Executive Vice
President and Chief Financial Officer, succeeding Jerome H. Baglien.
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William N. Dagher, formerly Vice President of MedPartners, Inc., rejoins
Medaphis as Senior Vice President and Chief Information Officer. Kevin P.
Castle, 41, formerly Senior Vice President of GE Capital Technology Management
Services, has been named Senior Vice President Human Resources. Promoted from
within Medaphis' business units to new corporate-wide positions are Steven P.
Ely, 42, to Senior Vice President Marketing and Christopher L. Ideker, 40, who
has been named Senior Vice President and Chief Compliance Officer. The Company
said that all of the appointments are effective immediately.
David E. McDowell, Chairman and Chief Executive Officer of Medaphis, said that
these management changes, when coupled with the Company's existing management
structure, should significantly enhance Medaphis' ability to execute its 1998
business plan and longer-term business objectives.
"Jim Schaper has shown tremendous leadership in the actions he has taken to
direct the strategy, realign the operations and maximize the potential of the
Company's application software, information technology and consulting services
business," Mr. McDowell said. "I am confident that he will be able to make
significant contributions across all of the Company's business segments in his
new role."
He added, "Allen Ritchie's background and accomplishments should, likewise,
contribute greatly to the growth and profitability of the Company as we move
forward. His depth and breadth of experience, as well as his leadership
abilities, should serve Medaphis and its employees and shareholders well."
Mr. McDowell said that each of the Company's four new senior vice presidents has
accomplished a great deal in their particular discipline. "Steve Ely has been
instrumental in designing the marketing strategy for the company's software
products and information technology segment. Chris Ideker has upgraded the
compliance activities in our physician services business to a best practices
standard and will continue his leadership role in all of Medaphis' compliance
activities. William Dagher brings a wealth of experience in technology
information and healthcare systems. Kevin Castle has demonstrated exceptionally
strong management and people skills."
Commenting on Mr. Baglien's decision to leave the Company, Mr. McDowell said
that both management and the Company's Board of Directors were grateful for Mr.
Baglien's dedication and numerous contributions.
"Jerry's skills and hard work are evident to anyone who has followed this
Company," he said. "The improvements in our financial group are significant and
many. We are both pleased and proud of the work he has done here. We are
well-positioned for the next phase in the execution of our business strategy."
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The Company released the following additional background on the new executives
joining Medaphis:
- - Allen W. Ritchie served as President and Chief Executive Officer of Royal
Precision, Inc. from October 1997 to present. He served as President,
Finance and Administration of AGCO Corporation, headquartered in Atlanta,
GA from July 1996 until January 1997 and President of AGCO from January
1996 to July 1996. From September 1991 until December 1995, he was AGCO's
Chief Financial Officer and an Executive Vice President since July 1994.
Mr. Ritchie also served on the Board of Directors of AGCO and as a member
of the Board's Strategic Planning Committee.
- - Kevin P. Castle has served as Senior Vice President of GE Capital
Technology Services since November 1995. From September 1993 until
November 1995, Mr. Castle was Senior Vice President, Operations of Alltel
Information Services, Inc., a subsidiary of Alltel Corporation. Mr.
Castle was Assistant Vice President, Customer Integration, of GTE Mobile
Communications, Inc. from 1991 to 1993.
- - William N. Dagher has served as Vice President of MedPartners since April
1994. From May 1993 to April 1994, he was a Director of Client Service at
Medaphis Corporation. From 1990 to 1993, he was National Director of
physician practice management at KPMG Peat Marwick.
Medaphis is a leader in delivering healthcare information, products and
services, together with enabling technologies in selected industries. Based in
Atlanta, Georgia, Medaphis currently services approximately 20,700 physicians
and 2,700 hospitals across the nation, and more than 100 systems integration
customers in service industries such as healthcare, communications, energy and
financial services.
The senior notes referred to in this Press Release may not be offered or sold in
the United States absent registration or an applicable exemption from
registration requirements. This Press Release shall not constitute an offer to
sell or the solicitation of an offer to buy senior notes or any other
securities. This Press Release contains statements that constitute
"forward-looking statements" within the meaning of the Securities Act of 1933
and the Securities Exchange Act of 1934, as amended by the Private Securities
Litigation Reform Act of 1995. "Forward-looking" statements contained in this
Press Release include the intent, belief or current expectations of the Company
and members of its senior management team with respect to bank financing, the
public or private offering of debt securities, debt and equity market conditions
and the Company's future business operations as well as the assumptions upon
which such statements are based. Prospective investors are cautioned that any
such forward-looking statements are not guarantees of future performance, and
involve risks and uncertainties, and that actual results may differ materially
from those contemplated by such forward-looking statements. Important factors
currently known to management that could cause actual results to differ
materially from those contemplated by the forward-looking statements in this
Press Release include, but are not limited to, adverse developments in the bank
financing or public or private markets for debt or equity securities or adverse
developments with respect to the Company's liquidity position or operation of
the Company's business units.
Additional factors that would cause actual results to differ materially from
those contemplated within this Press Release can also be found in the Company's
Safe Harbor Compliance Statement filed as Exhibit 99.1 to the Company's
Quarterly Report on Form 10-Q for the quarter ended September 30, 1997.
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