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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED): 3-26-98
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BIRMAN MANAGED CARE, INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
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DELAWARE 0-22127 62-1584092
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(STATE OF OTHER JURISDICTION (COMMISSION FILE NUMBER) (IRS EMPLOYER IDENTIFICATION NO.)
OF INCORPORATION)
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1025 HIGHWAY 111 SOUTH, COOKEVILLE, TENNESSEE 38501
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(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (931) 372-7800
(FORMER NAME OR FORMER ADDRESS, IF CHANGED SINCE LAST REPORT)
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Item 5 - Other Events
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COMPANY TO SUPPLY DOCUMENTS
The Company will supply certain documents concerning its business pursuant
to an administrative subpoena issued under the Health Insurance Portability &
Accountability Act of 1996. The Company expects to complete its response by
April 23, 1998. Birman & Associates, Inc., the Company's health care consulting
subsidiary, regularly serves a number of hospitals in Tennessee and Kentucky.
The federal government is now reviewing many of the practices of most if not
all hospitals in those and other states. The Company has for many years
supplied additional documents from time-to-time to various state and federal
agencies concerning its work for hospitals, including supplying supplemental
materials to Peer Review Organizations in connection with some of its
recommendations to hospitals. As the federal government continues to increase
its scrutiny of the healthcare industry, the Company anticipates that the
number of document requests it receives from regulatory agencies and the
outside professional and other costs related thereto may increase.
THIRD FISCAL QUARTER OPERATING LOSS
The net loss for the third quarter of fiscal 1997-98 is anticipated to be
approximately $985,000 and includes the following one-time charges: final
settlement of the Arkin lawsuit in the amount of $291,756, write off of
capitalized network development costs related to the Tennessee network in the
amount of $166,164, write off of old equipment and prepaid executive relocation
expense in the amount of $110,000, and an increase in the reserve for bad debt
expense of $60,000.
The following are "forward looking statements," while the Company believes
that these statements are accurate, future trends cannot be predicted with
certainty.
Outlook: The Company anticipates the net operating loss for the fourth fiscal
quarter to be less than the third quarter net operating loss. The Company
anticipates that this situation will improve in the first fiscal quarter of
1998-99 as (i) revenue is realized from the investment made in marketing to new
clients (ii) the health plans approach profitability and (iii) additional
revenue is realized from the QMP business as a result of new product offerings
and increased marketing initiatives. The Company's health plan will show
significant growth of revenue for the third fiscal quarter as it has grown to
approximately 3,600 members currently from 2,300 at the beginning of the third
fiscal quarter.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
BIRMAN MANAGED CARE, INC.
March 26, 1998 /s/ DAVID N. BIRMAN
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David N. Birman
Chairman of the Board,
President and
Chief Executive Officer
March 26, 1998 /s/ DOUGLAS A. LESSARD
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Douglas A. Lessard
Vice President, Treasure and
Chief Financial Officer
(Principal Accounting Officer)
