PROSPECTUS SUPPLEMENT
(TO PROSPECTUS DATED OCTOBER 23, 1996)
[STAT LOGO]
859,166 SHARES OF
COMMON STOCK
62,500 CLASS A WARRANTS
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THIS PROSPECTUS SUPPLEMENT INCLUDES FORWARD-LOOKING STATEMENTS BASED ON CURRENT
PLANS AND EXPECTATIONS OF STAT HEALTHCARE, INC. AND SHOULD BE READ IN
CONJUNCTION WITH ITS PROSPECTUS DATED OCTOBER 23, 1996, AS SUPPLEMENTED BY THE
PROSPECTUS SUPPLEMENT DATED NOVEMBER 19, 1996. SUCH STATEMENTS RELATE TO, AMONG
OTHER MATTERS, PROPOSED ACQUISITIONS AND ESTIMATES OF AMOUNTS THAT ARE NOT YET
DETERMINABLE. SUCH STATEMENTS INVOLVE RISKS AND UNCERTAINTIES WHICH MAY CAUSE
ACTUAL FUTURE ACTIVITIES AND REVENUES TO BE MATERIALLY DIFFERENT FROM THAT
SUGGESTED BELOW, INCLUDING AMONG OTHERS, THE RISK THAT PROPOSED ACQUISITIONS ARE
NOT CONSUMMATED OR ARE NOT SUCCESSFUL, AND CHANGES IN REIMBURSEMENT PRACTICES OR
RATES OR IN APPLICABLE GOVERNMENT REGULATIONS, AS WELL AS OTHER FACTORS
DESCRIBED IN THE PROSPECTUS DATED OCTOBER 23, 1996 AND THE PROSPECTUS SUPPLEMENT
DATED NOVEMBER 19, 1996.
RECENT DEVELOPMENTS
ANTICIPATED EMERGENCY MEDICAL SERVICES CONTRACTS
STAT Healthcare, Inc. ("STAT") anticipates that in December 1996 one of its
affiliated physician groups will enter into contracts ("Contracts") to provide
emergency medical services at up to seven hospitals in the Southeastern United
States. As currently proposed, the Contracts will have a one-year initial term
commencing on January 1, 1997 with provisions for automatic renewal unless
terminated by either party, and may be terminated by the hospitals in certain
circumstances, including unsatisfactory service by STAT or its affiliated
physician group. STAT estimates that revenues from the Contracts in the year
ending December 31, 1997 will aggregate approximately $10 million. No assurance
can be given that the Contracts will be obtained, or that if obtained the
Contracts will generate estimated revenues or profit margins consistent with
STAT's existing business.
If the Contracts are obtained, an unaffiliated corporation ("Contractor") will
provide certain management services to STAT related to the Contracts and for
which Contractor will receive from STAT a one-time start-up fee of $1.5 million.
STAT would also have the right to purchase Contractor, and may be required to
purchase Contractor, in either case for a purchase price of $1.25 million on the
first anniversary of the Contracts if such contracts are extended for a second
year. STAT would further be required to pay to the shareholders of Contractor an
additional $1.25 million on the second anniversary of the Contracts if such
contracts are extended for a third year.
OTHER POTENTIAL ACQUISITIONS
STAT and its affiliated physician groups are involved in various stages of
negotiations to acquire additional emergency medical services contracts and
existing dialysis treatment centers. However, no assurance can be given that any
potential acquisition will be consummated.
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THE DATE OF THIS PROSPECTUS SUPPLEMENT IS NOVEMBER 27, 1996.
