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): November 23, 1998
(November 20, 1998)
HEALTH POWER, INC.
(Exact name of registrant as specified in its charter)
Delaware 0-23220 31-1145640
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
1209 Orange Street, Wilmington, Delaware 19801
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (302) 658-7581
No Change
(Former name or former address, if changed since last report)
<PAGE>
Item 5. Other Events.
The information contained in the press release filed as Exhibit 99
is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
Exhibit
No. Description of Exhibit
99 Press release issued November 20, 1998.
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 hereunto duly authorized.
HEALTH POWER, INC.
Date: November 23, 1998 By /s/ Ronald J. Wurtz
----------------------------------
Ronald J. Wurtz,
Chief Financial Officer
<PAGE>
EXHIBIT INDEX
Exhibit
No. Description of Exhibit
99 Press release issued November 20, 1998.
<PAGE>
EXHIBIT 99
HEALTH POWER REPORTS ODHS APPROVAL DENIED
FOR SALE OF ITS HAMILTON COUNTY MEDICAID MEMBERSHIP
Columbus, Ohio, November 20, 1998. Health Power, Inc. (Nasdaq: HPWR)
today reported that the Ohio Department of Human Services (ODHS) has denied its
request for approval of the previously announced sale by the Company's HMO of
its Medicaid membership in Hamilton County, Ohio, to Dayton Area Health Plan
(DAHP). ODHS was forced to deny the request after Medical Mutual of Ohio gave
notice to ODHS on November 12, 1998, that Medical Mutual wished to immediately
withdraw as a Medicaid provider for Hamilton County. Federal regulations require
states to have at least two managed care plans operating in each county where
Medicaid managed care enrollment is mandatory, such as in Hamilton County, in
order for Medicaid recipients to have adequate choice. If the proposed transfer
to DAHP would have gone through, there would have been only one managed care
plan in Hamilton County.
In its denial letter to Dr. Bernard F. Master, Health Power's chairman,
ODHS stated that its "overriding concern at this point must be the continuation
of the mandatory enrollment program in Hamilton County. This mandatory program
has been in operation since April 1995 and we believe that in the best interests
of the enrollees, providers, and the community all possible efforts must be made
to have this program continue."
Commenting on the denial, Dr. Master said, "This does not change our
intention to exit the HMO business." Health Power is continuing its discussions
with DAHP regarding possible alternative structures for a transaction that would
allow for ODHS approval, as well pursuing discussions with other potential
purchasers interested in the Hamilton County Medicaid market. However, these
discussions are all in their preliminary stages at this time, and no assurance
can be given that a transaction will occur in the immediate future with respect
to the HMO's Hamilton County Medicaid membership. In addition, management is in
serious discussions with a potential purchaser of its Franklin County membership
and its related license. However, no definitive agreement has been reached and
the timing of any such agreement is uncertain.
Except for historical information, all other information provided in
this press release are "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. These "forward-looking
statements" are subject to uncertainties which could cause actual results to
differ materially from those projected or implied. The most significant of such
uncertainties are described in the Company's Form 10-K, Form 8-K, and Form 10-Q
and exhibits to those reports.
Health Power, Inc. is a managed care holding company whose operating
subsidiaries are Health Power HMO, Inc., CompManagement, Inc., and
CompManagement Health Systems, Inc. The HMO provides comprehensive health care
services to its members and enrollees in Ohio counties in and around the cities
of Columbus, Dayton, and Cincinnati.
CompManagement, Inc. and its subsidiary, CompManagement Health Systems,
Inc., offer claims management, medical cost containment, and managed care
services to employers with respect to their workers' compensation and
unemployment compensation claims. CompManagement, Inc. provides its services to
over 13,000 employers located in all 88 Ohio counties. CompManagement Health
Systems, Inc. is a state-certified MCO and provides, among other things, claims
review and processing for workers' compensation claims, bill review and payment
with respect to physician and hospital charges, quality assurance programs,
medical management, and cost containment services for 19,000 employers in all 88
counties in Ohio.
Contact: Ronald J. Wurtz or Dr. Bernard F. Master
of Health Power, Inc., (614) 461-9900.
