AMERICAN HEALTHCORP'S DTCA SIGNS NEW COMPREHENSIVE DIABETES DISEASE MANAGEMENT CONTRACT WITH HEALTH OPTIONS, INC.NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 15, 1998-- DTCA'S 12TH MANAGED CARE CONTRACT COVERS 300,000 LIVES IN MIAMI Miami, cities, United States Miami (mīăm`ē, –ə). 1 City (1990 pop. 358,548), seat of Dade co., SE Fla., on Biscayne Bay at the mouth of the Miami River; inc. 1896. AND SOUTHEAST FLORIDA Thomas G. Cigarran, Chairman and Chief Executive Officer of American Healthcorp, Inc. (Nasdaq/NM:AMHC AMHC Association of Mental Health Clergy AMHC Aviation Structural Mechanic Hydraulics Chief ), today announced that its wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , Diabetes Treatment Centers of America, has signed a new comprehensive diabetes disease management contract with Health Options, Inc., a subsidiary of Blue Cross & Blue Shield Blue Shield A US not-for-profit health care insurer that is a reimbursement intermediary for physicians. Cf Blue Cross. of Florida ("BCBSF BCBSF Blue Cross/Blue Shield of Florida "). The three year contract is DTCA's third with BCBSF and covers approximately 300,000 commercial and Medicare members in Miami and Dade, Broward, Martin and Palm Beach counties. It is estimated that this population currently includes approximately 10,000 members with diabetes. In contrast to DTCA's two other contracts with BCBSF, DTCA DTCA Direct-To-Consumer Advertising DTCA Dwell-Time Code Acquisition DTCA Defect-Tolerant Computer Architecture will be compensated under the new contract through a per member per month payment, with an initial minimum guarantee, for all members who elect to participate, as well as through payments based upon the achievement of specified outcomes measures. As a result, we anticipate that this contract will provide meaningful revenues to DTCA during fiscal 1998 without the startup impact incurred in earlier contracts. Implementation of the contract is expected to commence March 1, 1998. Mr. Cigarran commented, "We are delighted to announce this latest contract with Health Options. We believe that BCBSF's entering three separate contracts with us in 18 months demonstrates its commitment to improving the health of its enrollees with diabetes. The contracts also are an indication by one of the largest health insurance companies in the state of Florida of the effectiveness of DTCA's comprehensive diabetes disease management." Mel Fletcher, M.D., Vice President and Medical Director for Health Options, Inc., added, "We are also pleased to be entering this contract with DTCA. We believe the contract represents a `win-win' situation for our members, physicians and employer customers. Based on the experience of our colleagues who have contracts in operation with DTCA in the Orlando and Tampa regions, we expect to achieve significant short-term and long-term improvements in the health of our enrollees with diabetes." Mr. Cigarran concluded, "DTCA is now operating 12 managed care contracts with an aggregate base of covered lives in excess of two million. The signing of this latest contract will provide further momentum to our discussions with other at-risk healthcare providers, and we anticipate additional contract announcements with new and existing customers as fiscal 1998 progresses." This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which are based upon current expectations and involve a number of risks and uncertainties. In order for the Company to utilize the new "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995, you are hereby cautioned that these statements may be affected by the important factors, among others, set forth below, and, consequently, actual operations and results may differ materially from those expressed in these forward-looking statements. These important factors include: DTCA's ability to effect estimated cost savings under its managed care agreements or to effect such savings within the time frames contemplated by DTCA; and DTCA's ability to execute new managed care contracts. 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. The Company wholly owns Arthritis and Osteoporosis osteoporosis (ŏs'tēō'pərō`sĭs), disorder in which the normal replenishment of old bone tissue is severely disrupted, resulting in weakened bones and increased risk of fracture; osteopenia Care Centers, which operates comprehensive treatment centers for individuals with arthritis and osteoporosis. CONTACT: American Healthcorp Inc., Nashville Henry D. Herr, 615/665-1122 or Blue Cross & Blue Shield of Florida James Barnes James Barnes is the name of:
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