AMERICAN HEALTHCORP'S DTCA ENTERS INTO COMPREHENSIVE DIABETES DISEASE MANAGEMENT AGREEMENT WITH BRISTOL-MYERS SQUIBB CO.

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 16, 1996--Thomas G. Cigarran, Chairman and Chief Executive Officer of American Healthcorp, Inc. (Nasdaq/NM:AMHC), today announced an agreement with Bristol-Myers Squibb Co., U.S. Pharmaceuticals ("Bristol-Myers") whereby American Healthcorp's subsidiary, Diabetes Treatment Centers of America, will provide its comprehensive diabetes disease management services to Bristol-Myers' employees, dependents and retirees located in central and western New Jersey and eastern Pennsylvania. This geographic area represents one of Bristol-Myers' largest concentrations of individuals for whom it provides health insurance with approximately 12,500 total individuals under coverage. The number of individuals with diabetes in this population is estimated to be between 650 and 800.

Mr. Cigarran commented, "We are extremely pleased to announce this comprehensive diabetes disease management agreement with a large, progressive national employer. This agreement will provide for the first real-world translation of the successful Diabetes Control and Complications Trial ("DCCT"), which the National Institutes of Health completed late in fiscal 1993. Through this agreement, we expect to demonstrate that substantially improved clinical results and cost savings can be achieved in a real-world environment. We are confident of DTCA's ability to achieve these goals, given its experience treating people with diabetes since its founding in 1984."

In addition, the agreement provides Bristol-Myers an exclusive, one-year right to negotiate a further agreement with American Healthcorp regarding future joint business opportunities.

During the initial two-year term of this agreement, Bristol- Myers will continue to be at risk for all healthcare costs for this population, will reimburse DTCA for DTCA's anticipated costs associated with implementing its comprehensive diabetes disease management program for this group of Bristol-Myers insured individuals, and will pay DTCA $1,000,000. Implementation of this agreement is expected to begin in American Healthcorp's third fiscal quarter.

"This first agreement follows nearly two years of focused effort and investment by DTCA," added Mr. Cigarran, "to create a new diabetes population management business for a new group of customers: managed care organizations, other at-risk healthcare organizations, and large employers. We continue to have substantive discussions with a number of these organizations and believe our current momentum will enable us to consummate agreements with others in the months ahead."

American Healthcorp, Inc., through its wholly owned subsidiary, Diabetes Treatment Centers of America, Inc., is the nation's leading provider of specialized services for people with diabetes. Through its majority ownership of AmSurg Corp., the Company also develops, acquires and manages physician practice- based ambulatory surgery centers in partnership with surgical and other group practices. The Company wholly owns ArthritisCare Centers of America, which operates two comprehensive treatment centers for individuals with arthritis.

CONTACT: American Healthcorp, Inc., Nashville

Henry D. Herr, 615/665-1122