SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) June 17, 2004
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UNITED AMERICAN HEALTHCARE CORPORATION
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(Exact name of registrant as specified in its charter)
Michigan 000-18839 38-25269130
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
300 River Place, Suite 4950, Detroit, Michigan 48207
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(313) 393-4571
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(Former name or former address, if changed since last report)
Item 5. Other Events and Regulation FD Disclosure.
(A) The Company's wholly owned subsidiary, OmniCare Health Plan, Inc., in
Tennessee ("OmniCare-TN"), is one of a number of managed care organizations
("MCOs") having contracts with TennCare, a State of Tennessee program that
provides medical benefits to Medicaid and working uninsured and uninsurable
recipients. For all its contracted MCOs, TennCare earlier changed its
reimbursement system to an administrative services only ("ASO") program for an
initially declared 18-month stabilization period (July 1, 2002 through December
31, 2003), during which the MCOs - including OmniCare-TN - have no medical cost
risk (i.e., no risk for medical losses), earn fixed administrative fees, are
subject to increased oversight, and may incur financial penalties for not
achieving certain performance requirements. Through an amendment completed on
December 19, 2003, TennCare extended through June 30, 2004, the ASO
reimbursement system applicable to OmniCare-TN. TennCare recently provided
OmniCare-TN a further written amendment, which OmniCare-TN has signed and sent
back to be signed by TennCare, extending through December 31, 2004, the ASO
reimbursement system applicable to OmniCare-TN.
(B) On June 17, 2004, a Circuit Court judge for the 30th Judicial Circuit, in
Ingham County, Michigan, conducted a hearing and approved a report and
recommendation filed by the court-appointed Special Deputy Rehabilitator of
OmniCare Health Plan, a Michigan health maintenance organization ("OmniCare"),
in case no. 98-88265-CR, to which the Company is not a party. The Company
provided services for many years to OmniCare under a management agreement that
terminated November 1, 2002. The approved report and recommendation were filed
May 14, 2004 and requested that any potential cause of action against the
Company "resulting from its actions as the management company of OmniCare" be
assigned to the creditors of OmniCare who filed timely objections to the first
amended Rehabilitation Plan of OmniCare. (The court approved that Plan on July
29, 2002.)
At the June 17th hearing, the judge acknowledged the Company's
arguments opposing the recommendation, declared he was not prejudging any claims
which creditors of OmniCare might pursue against the Company, and stated he
would enter an appropriate order (which has not yet been presented to him) to
implement the Special Deputy Rehabilitator's recommendation. After the entry of
such order, a creditors committee may be formed to decide whether to bring suit
on any assigned claims against the Company. It is premature and not possible to
predict what subsequent proceedings and claims, if any, might ensue, or the
magnitude or outcome of such claims, if any.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the registrant has duly caused this Report to be signed on its behalf
by the undersigned hereunto duly authorized.
Dated: June 23, 2004 UNITED AMERICAN HEALTHCARE CORPORATION
By: /s/ William C. Brooks
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William C. Brooks
President and Chief Executive Officer
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