TUCSON, Ariz. and GOLDEN VALLEY, Minn., March 10 The Providence Service Corporation (Nasdaq: PRSC) and OptumHealth BehavioralSolutions(1), a comprehensive behavioral health company, today announced thatthey have entered into a strategic relationship agreement. Under theagreement, Providence will become a preferred provider to OptumHealthBehavioral Solutions and its affiliates facilitating contracting forProvidence's outpatient and home based behavioral health care services forOptumHealth Behavioral Solutions public sector purchasers.
Under the agreement, OptumHealth Behavioral Solutions and Providence willenter into provider agreements in designated market areas for specificbehavioral health services. Contracts will be negotiated at the state marketlevel. Terms, conditions and fees will be based on the specific servicesprovided in each location. OptumHealth Behavioral Solution's public sectormarket business provides benefits and services to approximately 1.2 millionpeople and operates across 30 states.
Commenting on the strategic relationship, Jean Moise, chief operatingofficer of OptumHealth Behavioral Solution's Public Sector, said, "OptumHealthBehavioral Solutions partners with a large number of public sector purchasers,union trusts, employers, health plans and other insurers, each with uniqueneeds. Providence believes, as we do, that it is important to deliver acombination of improved clinical and financial outcomes through innovativeclinical and program services. We look forward to working together to deliverthis value to our clients."
"As the effectiveness and economic benefits of providing home andcommunity based behavioral treatment alternatives continues to becomeapparent, more states and customers are focusing their attention in thisdirection," commented Fletcher McCusker, chairman and chief executive officerof Providence. "As one of the largest providers of home and community basedsocial services, Providence is an ideal partner for OptumHealth BehavioralSolutions. We also share a commitment to innovative solutions and measuringprogram effectiveness. We look forward to working with OptumHealth BehavioralSolutions throughout the country to design and implement programs to improveclinical outcomes, enhance productivity, quality of life and reduce medicalcosts throughout their patient population."
OptumHealth Behavioral Solutions is a business segment of OptumHealth, oneof the nation's largest health and well-being companies, OptumHealth makeshealth care easier and better for employers, health plans, public sectorentities and the 58 million people with access to its services. The Company'sgoal is to optimize health, well-being and financial security, while loweringbenefit costs and helping consumers make informed decisions about their healththrough standalone or integrated services. OptumHealth is an affiliate ofUnitedHealth Group (NYSE: UNH). More information about OptumHealth can befound at www.OptumHealth.com.
Providence Service Corporation, through its owned and managed entities,provides home and community based social services to government sponsoredclients under programs such as welfare, juvenile justice, Medicaid andcorrections. Providence operates no beds, treatment facilities, hospitals, orgroup homes preferring to provide services in the client's own home or othercommunity setting. Through its owned and managed entities, Providencemaintains 773 government contracts in 35 states, the District of Columbia andBritish Columbia as of September 30, 2007.
Certain statements herein, such as any statements about Providence'sconfidence or strategies or its expectations about revenues, results ofoperations, profitability, earnings per share, contracts, collections, awardof contracts, acquisitions and related growth, growth resulting frominitiativ