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): January 4, 2000
PROVANTAGE HEALTH SERVICES, INC.
(Exact name of registrant as specified in its charter)
Delaware 1-14923 54-1508848
(State or other jurisdiction (Commission file number) (IRS Employer
of incorporation) Identification No.)
N19 W24130 Riverwood Drive
Waukesha, Wisconsin 53188
(Address of principal executive offices)
Registrant's telephone number, including area code: (262) 312-3000
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Item 5. Other Events.
On January 4, 2000, ProVantage Health Services, Inc.
issued a press release regarding a new three-year
agreement to provide comprehensive pharmacy benefit
management services to certain operating subsidiaries
of American Medical Security Group, Inc. The January 4, 2000
press release is attached hereto as an exhibit
and is incorporated herein by reference.
Item 7. Exhibits.
Exhibit No. Description
99.1 Press Release dated January 4, 2000.
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SIGNATURE
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 hereunto duly authorized.
PROVANTAGE HEALTH SERVICES, INC.
Date: January 7, 2000 /s/ Robert Abramowski
--------------------------
Robert Abramowski
Sr. Vice President and Chief Financial Officer
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EXHIBIT INDEX
Exhibit No. Description
99.1 Press Release dated January 4, 2000.
Exhibit 99.1
ProVantage Signs Three-Year Contract With American Medical Security
WAUKESHA, Wis., Jan. 4 /PRNewswire/ -- ProVantage
Health Services, Inc. (NYSE: PHS) signed a three-year
agreement to provide comprehensive pharmacy benefit
management services for certain operating subsidiaries
of American Medical Security Group, Inc. (NYSE: AMZ)
(AMS). ProVantage will continue to provide prescription
benefit management services to more than 650,000
medical members covered by AMS. The terms of the new
agreement, which are effective January 1, 2000, replace
the terms in a previous agreement that was scheduled to
end June 30, 2000.
ProVantage has estimated that due to the
competitive pricing structure of the new PBM agreement
with AMS, the contribution to operating income under
the agreement is expected to be approximately $2
million less for the next twelve months than it would
have been had the existing contract been extended
through calendar 2000. ProVantage and AMS continue to
discuss other initiatives that are available through
the suite of ProVantage services that would assist AMS
and its beneficiaries. ProVantage believes the lower
contribution to operating income from the new PBM
agreement with AMS will be offset, in part or in whole,
during calendar 2000 by the addition of new PBM
customers and by the sale of Health Information
Technology products and services to new and existing
customers.
In a separate agreement, ProVantage also announced
that it has acquired for $5.0 million AMS' interest in
ProVMed, LLC giving ProVantage complete ownership and
control of ProVMed. It is the intent of both parties to
consummate during January 2000 an agreement to have
ProVantage continue providing ProVMed services to AMS.
These services include advanced data warehousing,
clinical and administration information support.
"We chose ProVantage because of their superior
customer service and the economic value that their
products and services provide to AMS," said Samuel V.
Miller, AMS Chairman, President and CEO. Miller added,
"We are very pleased with the extension of our
agreement with ProVantage and we look forward to the
continuation of the relationship between the two
companies."
"ProVantage is pleased to continue servicing AMS,"
said Jeffrey A. Jones, President and Chief Executive
Officer for ProVantage. Jones added, "Over the past
five years both companies have maintained a common
goal: to improve the quality of care while reducing
overall healthcare costs. ProVantage is committed to
continuing development of its advanced technology and
clinical services that will attain that goal."
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American Medical Security Group, through its
operating subsidiaries, markets health care benefits
and insurance products to small businesses, families
and individuals. The company serves customers
nationwide through partnerships with professional,
independent agents and quality health care providers.
It provides medical, dental, and life coverage. The
company's internet address is http://www.amschoices.com
ProVantage is a leading healthcare knowledge
company with Health Benefit Management (HBM) and Health
Information Technology (HIT) divisions that serve more
than 18 million people. Its goal is to be the leading
third-party supplier of products and services designed
to optimize the quality and minimize the cost of
healthcare services. ProVantage provides services to
more than 3,500 customers, including pharmacy benefit
management services and vision benefit management
services. The health information technology division
licenses products that are designed to improve the
quality of healthcare. These products are being used by
clients in programs covering more than 13 million
people. ProVantage's customers include healthcare
payors, self-funded employers, third-party health plan
administrators, state and federal agencies, union-
sponsored benefit plans and pharmaceutical
manufacturers. For more information regarding
ProVantage, please visit the website at
http://www.provantageinc.com or call investor relations
262-312-3643.
This press release contains forward-looking
statements within the meaning of the safe harbor
provisions of the Private Securities Litigation Reform
Act of 1995, including statements regarding the
expected financial impact of the new PBM agreement with
AMS, the expected financial impact of the addition of
new PBM customers and the sale of HIT products and
services to new and existing customers, and the
expected agreement with AMS regarding future ProVMed
services. Such statements are subject to important
factors which could cause ProVantage's actual results
to differ materially from those anticipated by the
forward-looking statements. These factors include those
referenced in ProVantage's registration statement on
Form S-1 or as may be described from time to time in
ProVantage's subsequent SEC filings.
