MED3OOO Obtains Senior Revolving Credit Facility, Redeems Shares, And Buys Out Joint Venture

PITTSBURGH, PA - MED3OOO Group, Inc. ("MED3OOO"), a privately-held healthcare management and technology company, today announced that it has obtained a $12.5 million senior revolving credit facility from Heller Healthcare Finance, Inc., a GE Capital company. Utilizing a portion of the proceeds of the facility, together with cash from operations, MED3OOO has redeemed shares from its majority shareholder, Provena Ventures. In related transactions, MED3OOO Health Solutions Central Region, Inc., a joint venture of MED3OOO and Provena Ventures, has sold its occupational health line of business back to Provena Health and has redeemed all of the shares previously owned by Provena Ventures, resulting in MED3OOO Health Solutions becoming a wholly owned subsidiary of MED3OOO.

Provena Service Corporation, which operates outpatient clinics throughout the Provena Health markets, will continue its relationship with MED3OOO by virtue of a renewed management agreement in which MED3OOO will manage a growing number of physicians employed or supported by Provena Service Corporation.

"Provena Ventures has been a valued shareholder and joint venture partner, but as MED3OOO has continued to grow nationally and Provena Health has begun to focus more locally on its core business of providing high-quality acute, long-term, and residential care, it became apparent that our mutual best interest was served by this series of transactions," commented MED3OOO Executive Vice President and Chief Financial Officer David Dillon. "We are pleased to have the opportunity to continue our relationship with Provena Service Corporation, and to assist them with their plans to affiliate with additional physicians. We believe that the extension of the management contract demonstrates our ability to develop long-term relationships with health systems and physician organizations."

"This is an option that will benefit everyone - the physicians, the Provena Health system, and the communities we serve," said President and CEO of Provena Ventures David Line. "It offers us the chance to focus on our mission, and gives the physicians employed by Provena Service Corporation the support they need to continue to operate more efficiently while maintaining a strong relationship with our health system and the community."

MED3OOO's refinancing provides an opportunity to continue its commitment to expansion into new markets west of the Mississippi, and to provide and develop the technical and operational tools and services necessary to help physicians make their practices more effective and efficient.

As part of the new arrangement, MED3OOO Health Solutions will sell back the occupational health and wellness business to Provena Health, who has a vested interest in continuing the risk appraisal program, health education, and incentive programs which were developed and managed by MED3OOO.

Dillon commented, "Selling back the occupational health business to Provena Health only makes sense, as both organizations recognize the need to concentrate on our core business models. Because the occupational health hospital service arrangement has been successful to date within Provena Health, but difficult for MED3OOO to transition to other markets."

Headquartered in Pittsburgh, Pennsylvania, MED3OOO has operations centers in Connecticut, Florida, Illinois, Pennsylvania, and West Virginia, and expected transactions in Colorado and California. The company's goal is to improve the performance of physician clients through evidence-based management and technology. MED3OOO offers an expert staff that is experienced in the day-to-day operations of a physician practice or IPA, and an information services team that excels in identifying, implementing, and operating software applications that meet the needs of a practice or IPA. The merging of operational and technical expertise allows MED3OOO to bridge the widening gap between provider organizations that need help with the growing complexity of the business of healthcare - and healthcare information system vendors who license software applications to address provider issues, but who are often without the operational expertise to utilize the applications in a real-world environment.

Provena Health is a Catholic health system whose 11,400 employees and 1,700 regional medical staff treat more than 1,000,000 patients annually. Most of its operations are in Illinois and include 7 hospitals, 14 long-term care facilities, and more than 30 clinics, as well as home health agencies, hospices, medical equipment stores, adult and child day care facilities and a health maintenance organization.