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PlanVista Reports Net Loss

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NU Online News Service, Nov. 6, 10:26 a.m. – PlanVista Corp., Tampa, Fla., is reporting a net loss of $35 million for the third quarter on $7.9 million in revenue, compared with a net loss of $35 million on $7.1 million in revenue for the third quarter of 2000.

The managed care company is including $1.8 million in costs related to the disposal of discontinued businesses in the net earnings figures, and a $32 million provision for income taxes incurred when PlanVista was a bigger company.

PlanVista recently spun off its health plan administration business. It still sells provider network administration services and operates a large health care provider network.

Excluding interest, taxes, depreciation and amortization, operating income for the quarter was $2.2 million, down from $2.6 million, the company says.

PlanVista made the news in September when it announced it had defaulted on the terms of a credit facility and entered into a “forbearance agreement” with the credit facility lenders.

The agreement gives PlanVista until Dec. 15 to restructure its existing credit facility or complete a refinancing. The agreement also allows the company to defer some interest payments.

“The company is currently negotiating with its lending group to restructure its credit facility,” PlanVista says. “The company believes it will complete the restructure in accordance with the terms of the forbearance agreement.”

PlanVista emphasizes that revenue from continuing operations is up, and that recently signed deals should bring it $6.5 million in new revenue in 2002.

PlanVista is also setting up a global corporate health care program. The company estimates that program could bring in another $4 million in revenue in 2002.


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