Phyhealth Corp (PYHH)

Phyhealth Corp ("Phyhealth"), is a Delaware corporation. The Company is a subsidiary of Physicians Healthcare Management Group, Inc (PHYH) and will be spun-off as a separate entity. PHYH was formed on February 14, 2005 and has been in the development stage and its efforts through June 30, 2009 have been principally devoted to organizational activities, raising capital, evaluating operational opportunities and fulfilling regulatory requirements. The business activities of PHYH will be transferred to and assumed by Phyhealth, which will continue to develop accountable, community health plans built on the foundation of a Health Maintenance Organization (HMO) license. The Company is a developer of community-based health maintenance organizations (HMOs) that are owned and operated in partnership with the participating physicians. Phyhealth Plans are designed to deliver high-quality affordable healthcare by enabling physicians to assume end-to-end management of healthcare for their patients. The Phyhealth model empowers physicians to provide preventive healthcare and proactively manage their patient's general health by aligning incentives among the HMO, physician and the patient. It intends to offer additional value-added products and services in cooperation with physicians, including medical malpractice insurance, local care facilities and wellness programs, as well as information technologies such as secure electronic medical records. Phyhealth will also market Physhield medical malpractice insurance coverage both within its community health plan physician networks and independently to qualified physician groups. The Phyhealth community health plan structure is unique in its design to keep physicians in control of the physician-patient relationship and place the responsibility for managing 100% of patient healthcare costs directly with the physicians. Phyhealth's community health plans are designed to be accountable health plans built on the foundation of a state licensed, for-profit HMO. It will be responsible for managing the business side of the health plans including financial, actuarial, compliance, member services and transaction processing. The physician owners will be responsible for managing patient care including utilization management, quality management, prevention programs, drug formularies and patient relations. Through this arrangement, Phyhealth members have a medical home that will support them in improving their overall health status by emphasizing keeping members healthy and fully coordinating care for members with acute and chronic disorders. Phyhealth plans to launch its first or "Pilot" community HMO in 2011 in west central Florida.