HORSHAM, Pa., July 17, 2012 /PRNewswire/ -- National Health Partners, Inc. (National Health) (OTCBB: NHPR), a leading provider of discount healthcare membership programs, announced today that it has successfully launched a new marketing initiative during the 2nd quarter. As a result of this new marketing approach the Company has seen strong monthly growth in both sales and cash flow. The Company also expects to continue adding more partners under this new program.
"The Company embarked on a bold new initiative at the beginning of the 2nd quarter and the results have been extremely positive," stated David M. Daniels, National Health Partners' President and CEO. "It's important to understand this new approach is a radical departure from how we previously compensated our partners. Historically we have paid residual commissions for the life of each membership; however, under the new program, the Company pays a one-time fee for each sale generated by a partner. The net effect is we own the memberships outright and therefore have no further obligations for the life of that member. As a result, the profit margin for retained memberships is almost triple what we would make under our previous residual payout structure."
Mr. Daniels further states, "This new program is having a profound impact on both revenues and cash flow. The Company expects to deliver positive cash flow from operations and we anticipate substantial gains in our overall cash flow for the remainder of the year. Another benefit from this payout program is the number of new partners who have signed up with us which will further drive sales going forward. As we continue to gain more traction under this new program we will be able to provide a more detailed forecast for both the 3rd quarter and 4th quarter. One thing is for certain, we are very excited about where we are now and where we expect to be by year-end."
National Health Partners, Inc.
National Health Partners, Inc. is a national healthcare savings organization that provides discount healthcare membership programs to uninsured and underinsured people through a national healthcare savings network called "CARExpress." CARExpress is one of the largest networks of hospitals, doctors, dentists, pharmacists and other healthcare providers in the country and is comprised of over 1,000,000 medical professionals that belong to such PPOs as CareMark and Aetna. The company's primary target customer group is the 47 million Americans who have no health insurance of any kind. The company's secondary target customer group includes the millions of Americans who lack complete health insurance coverage. The company is headquartered in Horsham, Pennsylvania. For more information on the company, please visit its website at www.nationalhealthpartners.com.
Safe Harbor Provision
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained herein, including, without limitation, statements regarding the company's future financial position, business strategy, budgets, projected revenues and costs, and plans and objectives of management for future operations, are forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "expects," "intends," "plans," "projects," "estimates," "anticipates," or "believes" or the negative thereof or any variation thereon or similar terminology or expressions. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from results proposed in such statements. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, it can provide no assurance that such expectations will prove to have been correct. Important factors that could cause actual results to differ materially from the company's expectations include, but are not limited to, its ability to fund future growth and implement its business strategy, its ability to develop and expand the market for its CARExpress membership programs, demand for and acceptance of its CARExpress membership programs, its dependence on a limited number of preferred provider organizations and other provider networks for healthcare providers, as well as those factors set forth in the company's Annual Report on Form 10-K for the year ended December 31, 2010 and its other filings and submissions with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date made. Except as required by law, the company assumes no obligation to update or revise any of the information contained in this press release.
National Health Partners, Inc.
SOURCE National Health Partners, Inc.