AMERICHOICE CORPORATION

AMERICHOICE CORPORATION

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Company Overview
AmeriChoice Corporation is a private company engaged in the provision of managed health care services to people eligible to receive Medicaid and Children’s Health Insurance Program, or CHIP benefits. The company was founded in 1989 by Anthony Welters, Jess E. Sweely, Edgar G. Rios, and Walter P. Lomax, Jr. It is traded on the NASDAQ National Market under the symbol AMCH and headquartered in Vienna, Virginia.
The company’s health programs and services include Medicaid, Medicare, Children’s Health Insurance Program, NJ FamilyCare, and NJ KidsCare.
AmeriChoice Corporation is considered as a leading provider of health care services to beneficiaries of public-sector health care programs. The company serves more than 1.3 million beneficiaries of government health care programs. It strives to improve the health and the lives of the people through the provision of high quality health care and health care management services efficiently and cost effectively. The company also aims to become the leading managed care organization in the public-sector health care market, measured in terms of both the quality and efficiency of its services.
The company is active and operational throughout New Jersey, Pennsylvania, and New York.
AmeriChoice Corporation is a business unit of UnitedHealth Group, an innovative leader in the health and well-being industry, serving approximately 70 million Americans.
Business Summary
AmeriChoice Corporation is a provider of healthcare services to beneficiaries of public-sector healthcare programs, including Medicaid and the Children’s Health Insurance Program. The Company’s mission is to improve the health and the lives of the people it serves by providing high-quality healthcare and healthcare management services efficiently and cost-effectively. As of December 31, 2001, the Company had approximately 370,000 members. AmeriChoice operates throughout New Jersey and in areas of Pennsylvania and New York.
Description and history
AmeriChoice Corporation, incorporated in December 1994, is a provider of healthcare services to beneficiaries of public-sector healthcare programs, including Medicaid and the Children’s Health Insurance Program (CHIP). The Company’s mission is to improve the health and the lives of the people it serves by providing high-quality healthcare and healthcare management services efficiently and cost-effectively. As of December 31, 2001, the Company had approximately 370,000 members. AmeriChoice operates throughout New Jersey and in areas of Pennsylvania and New York.

As compared to commercial populations that typically access healthcare without government assistance, such as through an employer plan or other private means, the Company’s target populations generally live in medically underserved areas and have historically accessed healthcare in an inefficient manner, relying on hospital emergency rooms for primary care services and failing to receive routine preventive care. Because of those circumstances, its members are more likely to experience high-risk pregnancies and have a higher incidence of chronic conditions such as diabetes, congestive heart failure, HIV/AIDS and respiratory ailments. The AmeriChoice Personal Care Model addresses the needs of its members by taking into account not only their medical needs, but also the social, psychological and environmental factors that affect their well-being. The Company develops programs and services designed to promote the optimum health of each member, including providing hands-on case management for its sickest members.

In response to the increases in healthcare-related costs, states have increasingly turned to managed care organizations, which provide an array of healthcare services to members at a fixed price per member. Managed care organizations are generally able to reduce the cost of health insurance by directing patients to providers with which such organizations have negotiated rates, and by managing members’ use of the healthcare system. Through the enactment of CHIP in 1997, the federal government has identified managed care as a means of providing health insurance to children whose families earn too much to be eligible for Medicaid, yet not enough to afford private health insurance. According to the Department of Health and Human Services, the number of children enrolled in CHIP increased 38% between 2000 and 2001, with the programs covering approximately 4.6 million children in 2001.

The Company’s Personal Care Model involves a number of inter-related steps, beginning with early identification of members with chronic conditions, continuing with the evaluation of the members’ health status and living conditions and culminating with the development, implementation and refinement of a care plan. AmeriChoice identifies members with chronic conditions using its claims data and medical management systems. The Personal Care Model involves active participation of many parties who have contact with the members, including the health plan, providers, lay caregivers, family, friends and community groups. The Personal Care Model programs are tailored to members’ needs and range from general outreach and education to hands-on, intensive care management. The Company’s education and outreach activities seek to encourage all of its members to obtain routine, preventive care. For its members with chronic conditions, its services are more hands-on and intensive. If the condition is not acute, members generally receive targeted educational materials, followed up with periodic telephone calls from a personal care case manager or health educator and a regular review of the member’s encounter history. For members who are taking multiple medications, have a history of repeat hospitalizations, are homebound or have a chronic condition that has entered an acute phase, the Company develops focused outreach and care management programs, such as its Maternal and Obstetrical Medical Services, and telemedicine programs. By using its Personal Care Model programs, the Company has been able to reduce the health benefit expenses of members with chronic conditions.

Founded by Anthony Welters, Jess E. Sweely, Edgar G. Rios, and Walter P. Lomax, Jr

Business Line
Engaged in the provision of managed health care services to people eligible to receive Medicaid and Children’s Health Insurance Program, or CHIP benefits
Subsidiary
AMERICHOICE
Advisor
DELOITTE & TOUCHE LLP
IPO date

US SIC Code
8011
Company Address
Suite 650
8045, Leesburg Pike
City province or state postal code
22182, VIENNA, VA
Phone: +1 703 506 3555
Fax: +1 703 506 3556
Country address: UNITED STATES OF AMERICA
Website url: www.americhoice.com