UNITED STATES 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
NOVEMBER 22, 1999
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(Date of earliest event reported)
LABORATORY CORPORATION OF AMERICA HOLDINGS
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(Exact name of registrant as specified in its charter)
DELAWARE 1-11353 13-3757370
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(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) Number)
358 SOUTH MAIN STREET, BURLINGTON, NORTH CAROLINA 27215
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(Address of principal executive offices)
336-229-1127
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(Registrant's telephone number, including area code)
ITEM 5. OTHER EVENTS
On November 22, 1999, Laboratory Corporation of America-
Registered Trademark-Holdings (LabCorp-Registered Trademark)
announced that it has contracted as a national provider of
laboratory services for CIGNA HealthCare's traditional
indemnity, preferred-provider organization and HMO products
in select markets. Terms of the multi-year agreement were
not disclosed. LabCorp also announced that its Board of Directors
has declared dividends on the Company's 8 1/2 percent Series A
Convertible Exhangeable Preferred Stock and the Company's 8 1/2
percent Series B Convertible Pay-in-Kind Preferred Stock.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL
INFORMATION AND EXHIBITS
(c) Exhibit
20 Press release of the Company dated
November 22, 1999.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned hereunto duly
authorized.
LABORATORY CORPORATION OF AMERICA HOLDINGS
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(Registrant)
By:/s/ BRADFORD T. SMITH
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Bradford T. Smith
Executive Vice President,
General Counsel, Secretary
and Compliance Officer
Date: December 1, 1999
Laboratory Corporation of America-Registered Trademark- Holdings
358 South Main Street
Burlington, NC 27215
Telephone: 336-584-5171
FOR IMMEDIATE RELEASE
Contact: Pamela Sherry LabCorp Shareholder Direct
336-584-5171, Ext. 4855 800-LAB-0401
www.labcorp.com
CIGNA HEALTHCARE CHOOSES LABORATORY CORPORATION OF AMERICA-REGISTERED
TRADEMARK- AS NATIONAL PROVIDER FOR SELECTED MARKETS
LABCORP'S BOARD OF DIRECTORS DECLARES PREFERRED STOCK DIVIDENDS
Burlington, NC, November 22, 1999 - Laboratory Corporation of
America-Registered Trademark- Holdings (LabCorp-Registered Trademark-)
(NYSE: LH) announced today that it has contracted as a national provider
of laboratory services for CIGNA HealthCare's traditional indemnity,
preferred-provider organization (PPO) and HMO products in select markets.
Terms of the multi-year agreement were not disclosed.
"As a preferred provider to CIGNA HealthCare, one of the
country's largest providers of health care benefits, LabCorp is
committed to strengthening our initiatives related to excellence
in customer service and technological leadership," said Stevan R.
Stark, Executive Vice President of LabCorp. "Our strengths in
providing innovative diagnostic technologies and health
management services for monitoring utilization and test result
data help set LabCorp apart while providing health plans, such as
CIGNA HealthCare, with value-added services for expanding and
better managing their diverse markets."
According to Dr. Frank Middleton, Senior Vice President,
Contracting at CIGNA, "Our relationship with LabCorp provides
improved access to our participating members and providers, while
expanding market choice and streamlining our claims processing
capabilities through LabCorp's front-end eligibility
verification."
LabCorp also announced today that its Board of Directors has
declared a dividend of $1.0625 per share on the Company's 8 1/2
percent Series A Convertible Exchangeable Preferred Stock (Series
A Preferred Stock), payable in cash. The Board has also declared
a dividend of $1.0625 per share on the Company's 8 1/2 percent
Series B Convertible Pay-in-Kind Preferred Stock (Series B
Preferred Stock), payable in shares of Series B Preferred Stock
at the rate of 0.02125 shares per share of Series B Preferred
Stock held. No fractional shares of Series B Preferred Stock
will be issued, so that the number of shares to be paid as a
dividend on the Series B Preferred Stock will be rounded to the
nearest whole number of shares. The dividends will be payable on
December 31, 1999, for each issued and outstanding share of
Series A and B Preferred Stock to stockholders of record on
December 17, 1999, and will cover the dividend period from
October 1, 1999, to December 31, 1999, at an equivalent
annualized rate of $4.25 per share.
Laboratory Corporation of America-Registered Trademark- Holdings
(LabCorp-Registered Trademark-) is a national clinical laboratory
with annual revenues of $1.6 billion in 1998. With 18,000 employees
and over 100,000 clients nationwide, the company offers more than
2,000 clinical tests, ranging from simple blood analyses to more
sophisticated technologies. Included in LabCorp's network of 25 major
laboratories are three Centers of Excellence. The Center for
Molecular Biology and Pathology, in Research Triangle Park (RTP),
North Carolina, develops applications for polymerase chain
reaction (PCR) technology. Its Center for Occupational Testing in
RTP is the world's largest substance abuse testing facility, and
the Center for Esoteric Testing in Burlington, North Carolina,
performs the largest volume of rare analyses in the network.
LabCorp's clients include physicians, state and federal
governments, managed care organizations, hospitals, clinics,
pharmaceutical and Fortune 1000 companies, and other clinical
laboratories.
CIGNA HealthCare is one of the nation's leading providers of
health benefit programs with products marketed in all 50 states
and managed care networks serving 45 states, the District of
Columbia and Puerto Rico. CIGNA HealthCare currently provides
medical coverage through managed care and indemnity programs to
more than 13.3 million people, as well as dental coverage and
mental health coverage to more than 23.6 million people. With
more than $93 billion in assets, CIGNA Corporation is a leading
provider of integrated employee benefits, including health care,
group insurance, retirement services and investment management.
"CIGNA HealthCare" refers to the various subsidiaries of CIGNA
Corporation, including Connecticut General Life Insurance
Company, CIGNA Health Corporation, CIGNA Dental Health, Inc.,
Intracorp, CIGNA Behavioral Health, Inc. and Healthsource Inc.
Products and services are provided exclusively by subsidiaries
and not by CIGNA Corporation.
The Company noted that each of the above forward-looking
statements was subject to change based on various important
factors, including without limitation, competitive actions in the
marketplace and adverse actions of governmental and other third-
party payors. Further information on potential factors that
could affect the Company's financial results is included in the
Company's Form 10-K for the year ended December 31, 1998 and
subsequent SEC filings.
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