Advanced Health Corporation acquires U.S. Health Connections to provide physician practice and network management services in the southeast; Physicians in southeast to benefit through improved clinical information management and managed care contracting expertise.

Corporation (AHC) today announced that it has acquired U.S. Health Connections Inc. (USHC) to enhance its ability to offer physician practice and network management services in the Southeastern United States.

The former USHC has approximately 600 physicians under network management and consulting contracts, through which it helps manage networks of physicians to support them in negotiating and managing profitable contracts with health plans. USHC has now become the Atlanta office of AHC's subsidiary, Advanced Clinical Networks Corporation.

By acquiring USHC, AHC establishes a presence in the southeast, where its Advanced Clinical Networks Corporation subsidiary will now offer physician practice and network management services, including state-of-the-art clinical information systems developed by AHC's other subsidiary, Med-E-Systems Corporation. The acquisition will enable the company to offer USHC's existing physician network clients improved clinical information management, additional managed care contracting expertise, and practice management services.

"Joining forces with Advanced Health gives us enhanced expertise and additional services to provide to our clientele in the Atlanta area," said Deborah Ann Smith, former principal of USHC and now a senior vice president of Advanced Clinical Networks Corporation. "As the influence of managed care continues to grow in the southeast, the trend toward consolidation of physician practices into networks or groups will continue and Advanced Clinical Networks will play a significant role in helping these networks secure and manage profitable contracts, while supporting delivery of high-quality care."

"The southeast United States represents a significant area of opportunity for Advanced Health and we are delighted to be working with the area's leading experts in creating and managing physician networks," said Richard W. Kaplan, president of Advanced Clinical Networks Corporation. "Our association with USHC will enable us to build on their strong experience with the market-specific issues faced by both physicians and payors in the southeast."

ACN's Network and Practice Management Services

ACN works with its networks to make them more competitive by providing information technology to support clinical decision-making and by centralizing and streamlining many administrative functions. ACN provides network physicians under management its proprietary clinical information management systems, which improve the sharing of clinical information among network providers and the collection of detailed outcomes and utilization information. Using ACN's information systems, networks have access to information that can improve the quality of care they provide, as well as inform them about the relative cost-effectiveness of health services rendered.

Based on the improved quality and cost of care delivery, ACN helps each network market its services and negotiate profitable contracts with managed care and other health care payors. Members of ACN provider networks benefit from economies of scale and greater contract negotiating strength.

ACN also offers practice management services, including administrative support, billing, collections, marketing, and consulting services, to improve the profitability of individual physician practices, whether or not they are part of larger integrated networks.

Advanced Health Corporation

Privately-held Advanced Health Corporation, based in Tarrytown, N.Y., is a health care management company which enables physicians to advance the quality, cost-effectiveness, and accessibility of health care. AHC provides physician network and practice management services to over 1,000 physicians through its Advanced Clinical Networks Corporation subsidiary and delivers physician-centered information systems nationwide through its Med-E-Systems Corporation subsidiary.

CONTACT: Advanced Health Corporation

Julia Davis, 914/332-6688 ext. 315