United American Healthcare Corporation announced financial results for the Company's fiscal second quarter ended Dec. 31, 2009.
Revenues for the second quarter were $1.7 million, down $2.8 million, or 62 percent, compared with revenues of $4.5 million for the second quarter of the prior fiscal year. The decline was primarily the result of the complete transfer of TennCare enrollees served by the Company's subsidiary, UAHC Health Plan of Tennessee (UAHC-TN), to other managed care organizations on Nov. 1, 2008, and the discontinuance of UAHC-TN's Medicaid managed care services as a TennCare contractor. The decrease in revenues was also attributable to the decrease in enrollment and associated revenue from the wind down of the Company's Medicare Advantage Special Needs Plan (MA-SNP), as the Medicare Advantage contract expired at the end of calendar 2009.
Total expenses decreased $3.3 million, or 53 percent, to $2.9 million in the fiscal 2010 second quarter, compared with total expenses of $6.2 million in the prior fiscal year's second quarter. The decrease was primarily related to reduced medical expenses, as well as lower marketing, general and administrative expenses in the quarter. For the second quarter of fiscal 2010, the Company reported a net loss of $1.1 million, or ($0.14) per share, compared with a net loss of $1.4 million, or ($0.16) per share, in the second quarter of fiscal 2009. The net loss in the most recent quarter was primarily the result of the loss of TennCare revenue and the wind down of the MA-SNP, partially offset by the reduction in expenses.
"United American Healthcare continues to move through a transitional period characterized by the end of our Medicare Advantage business at the end of the fiscal second quarter," said William C. Brooks, President and CEO of United American Healthcare. "As these operations come to an end, our revenues will no doubt be adversely affected. Moreover, the contraction of our revenue base is occurring even as we face the remaining medical expenses associated with our obligations as a Medicare provider. In light of these challenges, we continue to maintain tight control on all remaining expenses in our current lean operational structure."
As of Dec. 31, 2009, United American Healthcare reported cash, cash equivalents, short-term marketable securities and restricted marketable securities of $14.2 million, compared to $19.9 million as of June 30, 2009. The decrease in cash was primarily the result of the operating loss generated in the first half of fiscal 2010 as well as the payment in September 2009 of approximately $3.3 million in settlement of a lawsuit.
"Despite the tumultuous environment we find ourselves in, we are making progress in the ultimate transformation of our Company, while continuing to control costs and conserve our cash resources," concluded Brooks. "We now believe we are much closer to the end of this extensive process, and we remain committed to completing the hard work required to identify the best possible alternative to benefit all shareholders. When we conclude this process, we will communicate our results to shareholders and provide a strategic framework that will shape the future direction of our Company."
About United American Healthcare Corporation
United American Healthcare Corporation (UAHC) is a healthcare management company that has pioneered the delivery of healthcare services to Medicaid recipients since 1985. UAHC owns and manages UAHC Health Plan, which is based in western Tennessee and includes the Memphis market.
For more information, visit www.uahc.com .
