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EXHIBIT 99.1
[RENAL CARE GROUP]
NEWS RELEASE
FOR IMMEDIATE RELEASE
CONTACT: R. DIRK ALLISON
CHIEF FINANCIAL OFFICER
615-345-5500
RENAL CARE GROUP, INC. ANNOUNCES LAB SETTLEMENT
OF LESS THAN $2 MILLION
Nashville, Tennessee (December 12, 2000)--Renal Care Group, Inc. (Nasdaq/NM:
RCGI) today announced that the Company has reached an agreement in principle
with the U.S. Attorney for the Southern District of Mississippi to settle claims
arising out of alleged inadequacies in physician documentation related to lab
tests performed by its laboratory subsidiary, RenaLab, Inc. The settlement
covers periods from January 1996 through August 2000. While neither Renal Care
Group nor RenaLab admits any liability, the terms of the settlement provide that
RenaLab will pay $1.98 million to the Medicare program. The agreement in
principle is subject to finalizing the terms of a corporate integrity agreement
for the lab.
"We believe that the Company and its associates have operated properly.
Nevertheless, due to ambiguities in the laws and billing requirements related to
labs, the protracted nature of investigations of this type, and the distraction
and expense of litigation, the Company decided that a quick settlement is in the
best interests of Renal Care Group and its shareholders. Putting these issues
behind us will allow management of the Company and the lab to focus its
attention and energy on operating Renal Care Group's business and delivering
optimal care for our patients," said Sam A. Brooks, Jr., chairman and chief
executive officer of Renal Care Group.
The Company confirmed that it expects earnings for the fourth quarter
of 2000 to be approximately $0.34 per share before giving effect to the one-time
charge of $1.98 million for this settlement.
Renal Care Group will hold a conference call to discuss this press
release on Wednesday, December 13, 2000, at 7:30 a.m., Central Standard Time. A
listen-only simulcast as well as a 30-day replay of the conference call to
discuss this press release will be available online at the Company's website at
www.renalcaregroup.com and at www.streetevents.com.
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Renal Care Group, Inc.
2100 West End Avenue, Suite 800
Nashville, Tennessee 37203
(615) 345-5500 - (615) 345-5505 facsimile
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RCGI Announces Lab Settlement
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December 12, 2000
Renal Care Group, Inc. is a dialysis services company that provides
care to patients with kidney disease. The Company currently treats approximately
16,000 patients through 200 owned outpatient dialysis facilities, in addition to
providing acute dialysis services to more than 100 hospitals. Over 5,000
associates provide services across the Company's 24-state network.
Certain statements in this press release constitute "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act
of 1995. These forward-looking statements reflect management's expectations and
are based on currently available information. These forward-looking statements
involve known and unknown risks, uncertainties and other factors that may cause
actual results, performance or achievements of Renal Care Group to differ
materially from those expressed or implied by the forward-looking statements,
including risks related to: compliance with health care and other applicable
laws; the integration of acquired companies; changes in the Medicare and
Medicaid programs; payment reductions by private insurers, hospitals or managed
care organizations; and changes in the health care delivery, financing or
reimbursement systems. These and other factors affecting the company are
discussed in more detail in Renal Care Group's reports filed with the Securities
and Exchange Commission, including without limitation, Renal Care Group's annual
report on Form 10-K for the year ended December 31, 1999. Copies of these
filings are available from Renal Care Group upon request.
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