I am dismayed by certain assertions in your May 20 article (p. 2) about the merger of MedPartners/Mullikin and Caremark International. Specifically, I refer to the statement that the merger "will put to rest concerns about Caremark management that have dogged the stock."
Allow me to set the record straight. Caremark's senior management team led the company through a remarkable period of growth since it went public less than 31/2 years ago. In that time, Caremark has generated a 125% return on investment for its shareholders. Revenues from continuing operations increased 166% during the same period.
Management's ability to deliver strong financial results while making strategic changes needed to position the company for the future is evidence of its effectiveness. The management team helped transform the company in 1995 with the sale of its legacy home infusion business and other nonstrategic assets to establish itself as a leader in four of the fastest-growing areas in healthcare.
Management overcame significant obstacles to achieve this success. MedPartners, in fact, so values the contributions of the company's leadership that the majority of Caremark's senior management team will play a substantial role in the new company. Five of the eight key operating positions in the new company, which represent 70% of its pro forma revenues and profits, will be filled by Caremark managers.
C.A. LANCE PICCOLO
Chairman, chief executive officer
Caremark International, Northbrook, Ill.
