EXHIBIT 99.1
Contact:
Michael Earley Al Palombo
Metropolitan Health Networks Cameron Associates
Chairman & Chief Executive Officer Investor Relations
(561) 805-8500 (212) 245-8800 Ext. 209
mearley@metcare.com al@cameronassoc.com
METROPOLITAN HEALTH NETWORKS FILES APPLICATION WITH CENTERS FOR
MEDICARE & MEDICAID SERVICES
Company Expands Market Area Application to Include Three Additional Florida
Counties
WEST PALM BEACH, FL. - March 17, 2005 - Metropolitan Health Networks, Inc.
(AMEX: MDF), a provider of high quality, comprehensive healthcare services to
patients in South and Central Florida, announced today that its wholly owned
subsidiary, METCARE Health Plans, Inc., (METCARE Health Plans), has successfully
submitted its application with the Centers for Medicare & Medicaid Services
(CMS) to participate in the Medicare Advantage program. Upon approval from CMS,
it is expected that METCARE Health Plans will be awarded a contract with CMS.
The CMS contract would entitle METCARE Health Plans to receive federal monies to
offer a Medicare Advantage HMO Plan to Medicare beneficiaries located in its
approved markets.
In addition, Metropolitan announced that it has expanded its intended Medicare
Advantage HMO market area to include Charlotte, Sarasota and Lee Counties on
Florida's west coast. These markets are being added to Martin, St. Lucie and
Okeechobee Counties on Florida's eastern Treasure Coast.
Commenting on the submission, Michael Earley, Metropolitan's Chairman and Chief
Executive Officer, stated, "We are pleased to announce that our application has
been accepted for consideration by CMS. Further to our announcement in November
of 2004 of our application with the requisite Florida state licensing agencies
to create our HMO, the application to CMS is an important next step in the
regulatory process. Additionally we have now added three new counties to our
state and federal application process. This is an exciting development for
Metropolitan as these west coast Florida counties are home to more than 260,000
Medicare eligible residents, and similar to our Treasure Coast target market,
are currently underserved by Medicare Advantage providers. We look forward to
reporting our continued progress with the HMO application and licensing process
in due course."
About Metropolitan Health Networks, Inc.:
Metropolitan is a growing healthcare organization in Florida that provides
comprehensive healthcare services for Medicare Advantage members and other
patients in South and Central Florida. To learn more about Metropolitan Health
Networks, Inc. please visit its website at http://www.metcare.com.
Forward Looking Statements:
Except for historical matters contained herein, statements made in this press
release are forward-looking and are made pursuant to the safe harbor provisions
of the Private Securities Litigation Reform Act of 1995. Without limiting the
generality of the foregoing, words such as "may", "will", "to", "plan",
"expect", "believe", "anticipate", "intend", "could", "would", "estimate", or
"continue" or the negative other variations thereof or comparable terminology
are intended to identify forward-looking statements.
Investors and others are cautioned that a variety of factors, including certain
risks, may affect our business and cause actual results to differ materially
from those set forth in the forward-looking statements. These risk factors
include, without limitation, (i) pricing pressures exerted on us by managed care
organizations and the level of payments we receive under governmental programs
or from other payors; (ii) future legislation and changes in governmental
regulations; (iii) the impact of Medicare Risk Adjustments on payments we
receive for our managed care operations; (iv) our ability to successfully
recruit and retain medical professionals; (v) the impact of the shortage of
available flu vaccines for our members; and (vi) a loss of any of our
significant contracts. The Company is also subject to the risks and
uncertainties described in its filings with the Securities and Exchange
Commission, including its Annual Report on Form 10-K/A for the year ended
December 31, 2003.