November 23, 1998
AMERIPATH RECEIVES REFUND REQUEST FROM MEDICARE
Riviera Beach, FL, November 23, 1998 - AmeriPath, Inc.
(Nasdaq: PATH), a physician practice management company
focused on anatomic pathology services, announced today
that it has received a refund request in the amount of
$2.95 million from Medicare Program Safeguards ("MPS").
The request follows an onsite review, in April 1997,
by federal and state agencies comprising an Operation
Restore Trust Team, of the Company's Medicare billing
practices in 1996 at its Ft. Lauderdale laboratory facility.
The Company, which has conducted an internal review of
the billing procedures, records and services in question,
vigorously disputes MPS's findings and determination
and has requested an expedited conference and hearing
on the matter.
According to MPS's letter, following a "comprehensive
medical review", MPS determined that the Company is liable
for Medicare overpayments in the amount of $2.95 million,
and is seeking a refund or recoupment of this amount
by December 10, 1998. MPS's determination is based on
their finding that AmeriPath's Ft. Lauderdale facility
accepted payment for services that either were billed
using an improper procedure code or were not adequately
documented. This determination was made following a review
of a random sample of the Company's services to 30 Medicare
beneficiaries (and records, test results, other documents
and services in connection therewith), but without an
opportunity for the Company to present its case or be
heard on the issues presented. MPS's letter also states
that it believes an overpayment for 1997 likely exists,
and that a review of a sample of 1997 services may also
be conducted.
Although the Company believes that MPS's determinations
and the request for reimbursement are without merit,
there can be no assurance that this matter will be resolved
over the near term or that the ultimate outcome of this
matter will not have a material adverse effect on the
Company's results of operations. MPS has given notice
of its intention, beginning December 20, 1998, to offset
the alleged overpayment (plus interest at 13.5%) against
any pending or future Medicare payments; if the Company
prevails in its hearing and appeal of MPS's determination,
then any excess amounts withheld would be refunded to
the Company.
AmeriPath, Inc. is the nation's leading physician practice
management company focused on providing anatomic pathology
services to physicians, hospitals, national clinical
laboratories and managed care organizations. The Company
presently operates in ten states and employs 226 pathologists
who provide medical services through outpatient pathology
laboratories, hospital inpatient laboratories and outpatient
surgery centers.
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This release contains certain forward-looking statements
regarding AmeriPath, including its operations and prospects.
Past performance is not necessarily indicative of future
results. In addition, AmeriPath's actual results could
differ materially from the results anticipated in these
forward-looking statements as a result of uncertainties,
including risks relating to demand, pricing, government
regulation, payments and reimbursements, dependence upon
contracts and pathologists, acquisitions, integration
of acquired practices, the market for pathology services,
competition, and other factors identified in AmeriPath's
filings with the Securities and Exchange Commission.
