Health Risk Management, Inc. Announces Receipt of Nasdaq Staff Determination, But Anticipates Corporate Rationalization Plan

Apr 23, 2001, 01:00 ET from Health Risk Management

    MINNEAPOLIS, April 23 /PRNewswire Interactive News Release/ --
     Health Risk Management, Inc. (the "Company") (Nasdaq:   HRMIE) announced
 today that it has received a letter from the Nasdaq indicating that its shares
 would be delisted due to the Company's failure to file its annual report and
 Form 10-K for the period ended December 31, 2000, as required by Marketplace
 Rule 4310(c)(14).  The Company has requested a hearing before a Nasdaq Listing
 Qualifications Panel to review the Staff Determination, which will stay any
 delisting pending the issuance of a written determination following the
 hearing.
     As the Company disclosed on April 19, it has not filed its annual report
 and 10-K based on the on-going negotiations regarding a corporate
 rationalization plan, new financings and a plan to increase the capital
 reserves of its HMO subsidiary.  The Company intends to factor these matters
 into its annual report and 10-K, which it expects to file on or before
 May 15, 2001.
     The Company, headquartered in Minneapolis, owns and operates two Medicaid
 HMOs in the Commonwealth of Pennsylvania.  In addition, the Company provides
 managed care, administrative and indemnity services to self-funded employers,
 health plans, and other entities.
 
     Forward looking statements in this news release reflected as expectations,
 plans, anticipations, prospects or future estimates are subject to the risks
 and the uncertainties present in HRM's business and the competitive health
 care marketplace including, but not limited to, clients and vendors commonly
 experiencing mergers or acquisitions, use of estimates for incurred but not
 yet reported claims including medical services payable, use of estimates of
 bonus accruals including accounts receivable, reconciliations, volume
 fluctuations, provider relations and contracting, participant enrollment
 fluctuations, changes in member mix or utilization levels, fixed price
 contracts, contract disputes, contract modifications, contract renewals and
 non-renewals, regulatory issues and requirements, various business reasons for
 delaying contract closings, and the operational challenges of matching case
 volume with optimum staffing, having fully trained staff, having computer and
 telephonic supported operations, and managing turnover of key employees and
 outsourced services to performance standards.  While occurrences of these
 risks, and others periodically detailed in the Company's SEC reports, cannot
 be predicted exactly, such occurrences can be expected to have an impact on
 HRM's anticipated level of revenue growth or profitability.
 
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SOURCE Health Risk Management
    MINNEAPOLIS, April 23 /PRNewswire Interactive News Release/ --
     Health Risk Management, Inc. (the "Company") (Nasdaq:   HRMIE) announced
 today that it has received a letter from the Nasdaq indicating that its shares
 would be delisted due to the Company's failure to file its annual report and
 Form 10-K for the period ended December 31, 2000, as required by Marketplace
 Rule 4310(c)(14).  The Company has requested a hearing before a Nasdaq Listing
 Qualifications Panel to review the Staff Determination, which will stay any
 delisting pending the issuance of a written determination following the
 hearing.
     As the Company disclosed on April 19, it has not filed its annual report
 and 10-K based on the on-going negotiations regarding a corporate
 rationalization plan, new financings and a plan to increase the capital
 reserves of its HMO subsidiary.  The Company intends to factor these matters
 into its annual report and 10-K, which it expects to file on or before
 May 15, 2001.
     The Company, headquartered in Minneapolis, owns and operates two Medicaid
 HMOs in the Commonwealth of Pennsylvania.  In addition, the Company provides
 managed care, administrative and indemnity services to self-funded employers,
 health plans, and other entities.
 
     Forward looking statements in this news release reflected as expectations,
 plans, anticipations, prospects or future estimates are subject to the risks
 and the uncertainties present in HRM's business and the competitive health
 care marketplace including, but not limited to, clients and vendors commonly
 experiencing mergers or acquisitions, use of estimates for incurred but not
 yet reported claims including medical services payable, use of estimates of
 bonus accruals including accounts receivable, reconciliations, volume
 fluctuations, provider relations and contracting, participant enrollment
 fluctuations, changes in member mix or utilization levels, fixed price
 contracts, contract disputes, contract modifications, contract renewals and
 non-renewals, regulatory issues and requirements, various business reasons for
 delaying contract closings, and the operational challenges of matching case
 volume with optimum staffing, having fully trained staff, having computer and
 telephonic supported operations, and managing turnover of key employees and
 outsourced services to performance standards.  While occurrences of these
 risks, and others periodically detailed in the Company's SEC reports, cannot
 be predicted exactly, such occurrences can be expected to have an impact on
 HRM's anticipated level of revenue growth or profitability.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X74398071
 
 SOURCE  Health Risk Management

RELATED LINKS

http://www.hqi.com