Auditors Remove Going Concern Modification to Pacer Health Corporation's Financial Reports MIAMI--(BUSINESS WIRE)--April 26, 2005--Pacer Health Corporation (OTCBB: PHLH - News), a Miami-based owner-operator of acute care hospitals, medical treatment centers and residential care facilities, announced today that the company's independent auditors have elected not to include the going concern modification in their opinion relative to Pacer Health's financial statements for the year ended December 31, 2004. An auditor is required to evaluate conditions or events discovered during an engagement that raise questions about the ability of its client to continue as a going concern. An auditor who concludes that substantial doubt exists about the entity's ability to continue operating and who is not satisfied that management's plans are enough to mitigate these concerns is required to issue an audit opinion that will contain a paragraph outlining issues with this assumption. In its recently filed 10KSB report, which included Pacer Health's financial statements for the year ended December 31, 2004, Pacer's auditors did not include any such going concern paragraph in their audit opinion. Such a modification was included in Pacer Health's 10KSB report for the previous year. "The removal of the going concern modification is a clear signal that Pacer Health is successfully implementing its business plan and generating sufficient revenues to sustain its operations," said Rainier Gonzalez, chairman and CEO of Pacer Health. "We believe this independent validation of our model will reinforce investor confidence in our company."
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