Healthcare Industry News: IMRT
News Release - December 23, 2006
Radiation Therapy Services Responds to Forbes ArticleFORT MYERS, Fla., Dec. 23 (HSMN NewsFeed) -- Radiation Therapy Services, Inc. (Nasdaq: RTSX ), a leading operator of radiation therapy centers, announced today that the Company has issued a response to issues raised in the January 8, 2007 issue of Forbes Magazine. The information being provided was given to Forbes prior to publication but the Company feels it did not receive appropriate consideration.
For the Company's full and comprehensive response to the Forbes article, please visit the Radiation Therapy Services Investor Relations Web site at http://www.rtsx.com.
Radiation Therapy Services Inc. is a leader in its field -- working with physicians to bring the most up-to-date radiation services to their patients. The Company has always placed patient welfare at the top of its list of priorities, while seeking to conduct its business in accordance with all applicable laws and regulations. We are proud of our record.
Among the issues covered in the Forbes article:
Existing Litigation -- Many of the allegations covered in the article are taken from a lawsuit filed by a former physician employee. Others are irrelevant issues aired publicly in an attempt to put pressure on the company to settle. RTSX has investigated and is confident that they have no merit. The company intends to proceed to court to defend itself.
IMRT -- The article insinuates that RTSX has overused and overcharged for IMRT treatments. This is absolutely false. The article also claims that the company promotes higher IMRT use by offering illegal bonuses. This is also false.
Referral "Kickbacks" -- Forbes repeats a lawsuit allegation that, since it is illegal to pay doctors for referrals, RTSX has been busy buying physician practices as a means to circumvent the law. This charge is demonstrably false. All mergers and acquisitions are thoroughly vetted by outside counsel and meet all applicable laws and regulations.
Florida Attorney General -- Once the lawsuit was filed and allegations were made, RTSX informed the Attorney General on its own accord and voluntarily provided all information about the matters raised. The article insinuates otherwise. As of this date, the AG's office has taken no further action.
OCS -- The article states that OCS, "directs lower-paying HMO patients from Humana to radiation clinics owned by RTSX," in order for RTSX to receive referrals of other patients. The facts as established in depositions -- which were provided to Forbes -- completely refute this claim.
Imaging Services Settlement -- This matter involves another Company in a different business. It does not even remotely fall under the required disclosures regarding directors or officers as required by the securities laws. Furthermore, contrary to Forbes' representations, this matter did not in any way call into question the personal or professional integrity of RTSX's Chairman.
Merging of Practices -- The allegations that we merged various medical specialties in order to bolster referrals is false and not supported by the facts. Furthermore, merging practices can lead to better outcomes, better rates of survival and fewer complications from treatment. Combining various medical specialties in a multi-specialty group practice is specifically authorized under the law.
Malpractice Insurance -- Insinuations of improper conduct by Company executives pertaining to their establishment of a malpractice insurance company are unfounded.
About Radiation Therapy Services, Inc.
Radiation Therapy Services, Inc., which operates radiation treatment centers primarily under the name 21st Century Oncology, is a provider of radiation therapy services to cancer patients. The Company's 76 treatment centers are clustered into 24 local markets in 15 states, including Alabama, Arizona, California, Delaware, Florida, Kentucky, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Carolina, Rhode Island and West Virginia. The Company is headquartered in Fort Myers, Florida. More information about the Company can be found at its Web site http://www.rtsx.com.
This release may contain forward-looking statements about the Company's future plans, expectations and objectives, including, but not limited to, the Company's future plans regarding the facilities and the likelihood of future success in the new market. Words such as "may," "will," "expect," "intend," "anticipate," "plan," "believe," "seek," "could" and "estimate" and variations of these words and similar expressions are intended to identify forward- looking statements. These forward-looking statements are not historical facts and are subject to risks and uncertainties that could cause the actual results to differ materially from those projected in these forward-looking statements including, but not limited to the Company's ability to successfully integrate the acquired facilities, those risk factors described in the "Risk Factors" section and other information in the Company's most recently filed quarterly report on Form 10-Q and annual report on Form 10-K, as well as the Company's other filings with the Securities and Exchange Commission which are available on the SEC's website at www.sec.gov. Readers of this release are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to publicly update or revise the forward-looking statements contained herein to reflect changed events or circumstances after the date of this release.
Source: Radiation Therapy Services
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