SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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) June 4, 1998
Curative Health Services, Inc.
(Exact name of registrant as specified in its charter)
Minnesota 000-19370 41-1503914
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
150 Motor Parkway Hauppauge, NY 11788-5145
(Address of principal executive offices) (Zip code)
Registrant's telephone number, including area code: (516)232-7000
NOT APPLICABLE
(Former name or former address, if changed since last report.)
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Item 5. Other Events.
The Registrant issued the press release on June 4, 1998 included as
Exhibit 7(c)(2).
Item 7. Financial Statements and Exhibits.
(a)(b) No financial statements or proforma financial information
filed herein.
(c) Exhibits. The following Exhibit is filed as part of this Report:
Item No. Description
7(c)(2) Press Release dated June 4, 1998.
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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.
Curative Health Services, Inc.
(Registrant)
Date: June 4, 1998 By: /s/ John C. Prior
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John C. Prior
Senior Vice President/Finance and CFO
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FOR IMMEDIATE RELEASE Contact: Bill Tella
Curative Health Services
516-232-7000
Steve Schelhammer
Accordant Health Services
910-855-5870
Alison Trollope x 224 (Investor)
Heather Hennessy x 274 (Media)
Noonan/Russo Communications, Inc.
212-696-4455
CURATIVE HEALTH SERVICES, INC. ANNOUNCES AGREEMENTS WITH
ACCORDANT HEALTH SERVICES, INC.
- New Program to Expand Curative's Wound Care Service Line -
Hauppauge, New York, June 4, 1998 - Curative Health Services, Inc. (Nasdaq:
CURE) today announced that it has signed a development and license agreement
with Accordant Health Services, Inc., a private disease management company. At
the same time, Curative announced that it has agreed to participate in a round
of venture financing in which it will invest $4 million dollars in Accordant
preferred stock.
As a strategic partner, Accordant has been licensed by Curative to develop and
market a wound care disease management program specific for payors, which
include Health Maintenance Organizations (HMOs), Preferred Provider
Organizations (PPOs), and insurance companies. This new disease management
program will complement Curative's existing wound care management program which
is currently offered primarily to hospital providers.
It is anticipated that under the new disease management program, Accordant will
identify people with chronic wounds as well as those who are at high risk of
developing chronic wounds. Using existing as well as newly developed
relationships with payors, Accordant will offer the program to payor
subscribers. Accordant will use its core competencies in disease management and
computer monitoring systems to develop, market, and operate this Curative
program to payors in select areas.
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At the same time, Curative has agreed to invest $4 million in Accordant
convertible preferred stock as part of a $7 million round of venture capital
financing. Curative will own approximately 11% of Accordant's outstanding equity
determined on a fully diluted basis. The proceeds of the venture financing will
be used for general corporate purposes.
John Vakoutis, President and Chief Executive Officer of Curative, stated, "This
development and license agreement with Accordant is important to our long term
managed care strategy. By incorporating a wound care disease management program
specific for payors with our existing comprehensive wound care management
program, Curative will position itself to further expand its growth. Accordant
is the right company to partner with since it has a commendable reputation in
the disease management industry. In the future, other programs such as a
diabetes disease management program may be developed."
Steve Schelhammer, President and Chief Executive Officer of Accordant, stated,
"We are pleased that Curative recognizes the value in Accordant's approach to
specialized disease management services. The wound care expertise that Curative
already has successfully accumulated will complement the process of developing
and delivering these services."
Accordant's primary disease management products are dedicated to patients with
rare and complex diseases such as multiple sclerosis and cystic fibrosis and are
marketed to payors. The Company has recently signed contracts with several large
payors to manage individuals with one of their specialty diseases.
Accordant Health Services, Inc., based in Greensboro, NC, is a private disease
management company developed with and supported by the nation's leading experts
on rare chronic disorders. The Company's focus is on producing significant and
measurable benefits to patients, providers and purchasers of healthcare while
emphasizing data driven accountability.
Curative Health Services, Inc., is a leading disease management company in
chronic wound care. The Company provides a broad continuum of services to health
care providers through a nationwide network of wound care programs which offer
comprehensive, multi-disciplinary wound care.
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Editor's Note: This press release is available on http://www.noonanrusso.com
