AMERICAN HEALTHCORP EARNS $0.11 PER SHARE FOR THE THIRD QUARTER OF FISCAL 1995.

NASHVILLE, Tenn.--(BUSINESS WIRE)--June 19, 1995--Thomas G. Cigarran, Chairman and Chief Executive Officer of American Healthcorp, Inc. (Nasdaq/NM: AMHC), today announced financial results for the third quarter and first nine months of fiscal 1995.

Total revenues for the third quarter, which ended May 31, 1995, were $14,387,000, an increase of 7.9% from $13,332,000 for the third quarter of fiscal 1994. Net income was $875,000, or $0.11 per share, for the latest quarter compared with $1,267,000, or $0.15 per share, for the same period in the last fiscal year.

Total revenues for the first nine months of fiscal 1995 rose 7.8% to $42,018,000 from $38,993,000 for the first nine months of fiscal 1994. Net income was $3,022,000, or $0.37 per share, for the period, down from $4,159,000, or $0.49 per share, for the comparable period in fiscal 1994.

Mr. Cigarran remarked, "Financial results for the third quarter of fiscal 1995 carried on trends evident throughout the fiscal year. AmSurg Corp. continued to produce increases in centers in operation, revenues, and profitability. The number of AmSurg centers in operation at the end of the quarter doubled to 18 from the end of the third quarter of fiscal 1994. In addition to centers currently open, AmSurg has nine other centers in development, awaiting certificate of need approval or under executed letters of intent. The growth in the number of AmSurg centers in operation was the primary reason for a 66.7% increase in its revenues for the quarter to $5,417,000 from $3,250,000 for the third quarter of fiscal 1994 and for the 42.3% increase in AmSurg's net income contribution to American Healthcorp to $148,000 from $104,000. The growth in net income occurred despite AmSurg's 35% income tax rate for the quarter compared with no income tax expense provision for the third quarter of fiscal 1994 because of the utilization of previous net operating loss carryforwards.

"The anticipated decline in DTCA's financial results for the quarter compared with the third quarter of the prior fiscal year was attributable to previously announced factors. As in the first half of the fiscal year, the standardized contracting agreement with Columbia/HCA was primarily responsible for a decline in same- center revenues of 9% for the quarter. We also continued our investment in new DTCA product development, support and sales. For the quarter just ended, this planned investment was $0.06 per share higher than for the same quarter last year. In addition, we had $0.02 per share in legal expenses for the quarter related to the previously announced civil lawsuit brought against the Company in June 1994 by a former employee.

"DTCA signed contracts for two new centers for the quarter compared with one new contract signing for the third quarter the prior fiscal year. In addition, four contracts were renewed during the quarter compared with two renewals during the third quarter of fiscal 1994. Three contracts were discontinued for the quarter and one contract was discontinued for the same period in fiscal 1994.

"DTCA's new product development, support and sales efforts continued to progress during the quarter just ended. We have a number of initiatives in various stages of development, including ongoing discussions with managed care organizations related to large-scale diabetes disease management contracts. Although DTCA has not yet signed any such contracts, our opinion remains that this developing market offers significant potential for DTCA's future growth, and we are continuing initial implementation activities for a previously discussed diabetes population management contract in anticipation of that contract's final approval.

"We believe that DTCA is successfully positioning itself for growth in the expanding managed care industry. We have remained financially sound during the ongoing transition to this new era, with good cash flow and cash reserves. DTCA's evolving position in what we expect will become a large developing disease management market, together with the opportunities provided by AmSurg's continuing growth, provide the basis for our confidence in the future prospects of American Healthcorp. As evidence of this confidence, American Healthcorp repurchased 50,000 shares of the Company's common stock during the quarter under its previously announced stock repurchase program."

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 also wholly owns ArthritisCare Centers of America, which operates two comprehensive treatment centers for individuals with arthritis. -0-

                    AMERICAN HEALTHCORP, INC.
                 Unaudited Financial Highlights

                      Three Months Ended        Nine Months Ended
                            May 31,                  May 31,
Revenues:              1995        1994         1995        1994
  DTCA and other    $8,970,000  $10,082,000  $27,923,000  $31,478,000
  AmSurg             5,417,000    3,250,000   14,095,000    7,515,000
    Total          $14,387,000  $13,332,000  $42,018,000  $38,993,000
Net income:
  DTCA and other    $  727,000   $1,163,000   $2,584,000   $4,169,000
  AmSurg               148,000      104,000      438,000      (10,000)
    Total           $  875,000   $1,267,000   $3,022,000   $4,159,000
Net income per share   $  0.11      $  0.15      $  0.37      $  0.49
Average shares
  outstanding        8,093,000    8,438,000    8,260,000    8,493,000

CONTACT: American Healthcorp Inc., Nashvillle

Henry D. Herr, 615/665-1122