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Largest Contract in Harmony History
* Contract with Hotel Employees and Restaurant Employees International
Union (HEREIU)
* Three-year contract worth $2 million annually
* Including HEREIU contract, Harmony Healthcare to be exclusive
EAP/Behavioral Healthcare provider to more than 400,000 covered lives
* Pioneer's Nevada presence increased, with recent Harmony wins and Seven
Hills Behavioral Hospital in development; Harmony now serves
21 separate properties in Las Vegas
PEABODY, Mass., May 18 /PRNewswire-FirstCall/ -- Pioneer Behavioral Health, Inc. (OTC Bulletin Board: PIHC) today announced that its Harmony Healthcare subsidiary has been awarded a new, three-year Employee Assistance Program (EAP) and Behavioral Health services contract for the Hotel Employees and Restaurant Employees International Union (HEREIU), effective July 1, 2006. The HEREIU currently employs more than 50,000 with over 130,000 covered lives, and the contract is expected to generate in excess of $2 million in incremental revenue to Harmony annually.
The 5-session HEREIU EAP and the fee-for-service Behavioral Health services portions are each expected to generate in excess of $1 million in revenue to Harmony Healthcare annually.
"The growing realization of the importance of mental health continues to drive growth in our Harmony Healthcare subsidiary," commented Bruce A. Shear, CEO of Pioneer Behavioral Health. "Businesses and labor unions increasingly recognize that behavioral and mental health services represent an important component of a comprehensive healthcare offering and a valuable benefit for employees. Additionally, quality EAP and behavioral healthcare services provide employers with happier, healthier and more productive employees, leading to increased productivity. We are pleased to expand our market share in the Nevada market and bring important behavioral services to this large group."
About Pioneer Behavioral Health
Pioneer Behavioral Health operates companies that provide inpatient and outpatient behavioral health care services, clinical research, and Internet- and telephonic-based referral services. The Companies contract with national insurance companies, government payors, and major transportation and gaming companies, among others, to provide such services. For more information, please visit www.phc-inc.com or www.haydenir.com.
Statement under the Private Securities Litigation Reform Act of 1995:
This press release may include "forward-looking statements" that are subject to risks and uncertainties. Forward-looking statements include information about possible or assumed future results of the operations or the performance of the Company and its future plans and objectives. Various future events or factors may cause the actual results to vary materially from those expressed in any forward-looking statements made in this press release. For a discussion of these factors and risks, see the Company's annual report on Form 10-K for the most recently ended fiscal year.
Company Contact: Investor Relations Contact:
PHC, Inc. Hayden Communications, Inc.
Bruce A. Shear Matthew Hayden
978-536-2777 843-272-4653
SOURCE Pioneer Behavioral Health, Inc.
-0- 05/18/2006
/CONTACT: Bruce A. Shear of PHC, Inc., +1-978-536-2777; or Investor
Relations, Matthew Hayden of Hayden Communications, Inc., +1-843-272-4653, for
Pioneer Behavioral Health, Inc./
/Web site: http://www.haydenir.com /
/Web site: http://www.phc-inc.com /
(PIHC)
CO: Pioneer Behavioral Health, Inc.; Harmony Healthcare; Hotel Employees and
Restaurant Employees International Union
ST: Massachusetts
IN: HEA MTC CPR OTC RST
SU: CON
MH-EW
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1708 05/18/2006 09:51 EDT http://www.prnewswire.com