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) February 18, 1999
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.
In the Company's fourth quarter and year end 1998 telephone conference call
held on February 18, 1999 with analyst and other members of the investor
community, Curative Health Services, Inc. announced that it expects the
percentage growth in its revenue and earnings for 1999 to be in the low to
mid teens. The Company attributed this decline to increased terminations of
Wound Care Centers contracts and general uncertainty with respect to its
relationship with a major customer.
"During 1998 we experienced a greater number of Wound Care Center closings
than expected," said John Vakoutis, President and Chief Executive Officer.
"The hospital industry experienced volatility and uncertainty due to pricing
pressures, competition and other issues which has created some pressure on
our business in the form of increased negotiations and in some cases
termination. Although we are confident that the Curative program provides
hospitals with financial upside, this value is not always accepted,
particularly when the hospital is undergoing broader difficulties."
Mr. Vakoutis also stated that, "We have recently been in discussions with
Columbia Healthcare regarding our relationship. Currently we have contracts
with 30 Columbia hospitals which accounted for approximately 23% of our
revenue in 1998. The purpose of these discussions is to develop a standard
template contract for all Columbia Wound Care Center hospitals that is
acceptable to their legal team in light of their current issues with the
government. Although we believe we are making progress, we have no assurance
that the final outcome will be positive for Curative."
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.
This report release contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1993, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. These statements include
statements regarding intent, belief or current expectations of the Company
and its management. These forward-looking statements are not guarantees of
future performance and involve a number of risks and uncertainties that may
cause the Company's actual results to differ materially form the results
discussed in these statements. Factors that might cause such differences
includes, but are not limited to, changes in the Company's level of business
with Columbia/HCA Healthcare Corporation, changes in the government
regulations relating to the Company's wound care operations or Procuren,
uncertainties relating to health care reform initiatives, changes in the
availability of third party reimbursements for the Company's products and
services, and the other risks and uncertainties detailed form the time in the
Company's filings with the Securities and Exchange commission. Readers are
cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date of this release. The Company undertakes no
obligation to update publicly any forward-looking statements to reflect new
information, events or circumstances after the date of this release or to
reflect the occurrence of unanticipated events.
Item 7. Financial Statements and Exhibits.
(a)(b) No financial statements or proforma financial information
filed herein.
(c) No exhibits are filed as part of this Report.
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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: February 18, 1999 By: /s/ John C. Prior
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John C. Prior
Senior Vice President/Finance and CFO
