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ADVACARE ANNOUNCES EARNINGS OUTLOOK

 ADVACARE ANNOUNCES EARNINGS OUTLOOK
 HORSHAM, Pa., April 20 /PRNewswire/ -- AdvaCare, Inc. (NASDAQ: AVCR)


announced today that it expects to report, later this week, revenues of approximately $18.2 million and income before extraordinary write-offs of approximately $800,000 for the quarter ended March 31, 1992.
 The earnings are in line with the company's expectations. As anticipated, net income available to common stockholders will be adversely impacted by the write-off of discounts associated with debt and preferred stock retired early from proceeds of the initial public offering.
 Revenues for the quarter ended March 31, 1992, were slightly below the company's expectations and were offset by higher than anticipated operating margins. The lower than anticipated revenues reflected a slowdown in new client additions in the Physician Division from the rate of new client additions in the first fiscal quarter. Additionally, the implementation of Medicare physician payment reform lowered client collections during the period and caused the company to focus heavily on preparing existing clients for payment reform rather than installing new clients. While the reduced growth rate of new clients in the second fiscal quarter is expected to impact revenue growth in the third fiscal quarter, the company said it anticipates the effect will be partially offset by the higher than normal rate of new client additions currently under contract and scheduled for start-up during the third fiscal quarter.
 The company also announced that it will acquire three companies which provide medical reimbursement management services to hospital and office-based physicians in the Southeastern United States. Joe Davis, president of the Physician Division, commented that "these operations will provide AdvaCare with high quality entry opportunities into very attractive markets, which geographically are contiguous to our existing business and can be effectively integrated into our existing management structure."
 AdvaCare is a leading provider of reimbursement management services including fee structuring, coding, billing and third party claims management to more than 5,000 physicians and to more than 70 hospital outpatient departments in 31 states.
 /delval/
 -0- 4/20/92
 /CONTACT: Gregory S. Campbell, chairman of AdvaCare, 215-674-1800/
 (AVCR) CO: AdvaCare, Inc. ST: Pennsylvania IN: HEA SU: ERP


MP-MK -- PH003 -- 9880 04/20/92 09:08 EDT
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Publication:PR Newswire
Date:Apr 20, 1992
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