AmSurg Comments On Recently Enacted Benefits Protection and Improvement Act of 2000; Act Delays ASC Payment System Proposal's Implementation and Extends Implementation Period.

Business Editors, Health & Medical Writers

NASHVILLE, Tenn.--(BUSINESS WIRE)--Jan. 5, 2001

Ken P. McDonald, President and Chief Executive Officer of AmSurg Corp. (Nasdaq/NM:AMSGA) (Nasdaq/NM:AMSGB), today said, "We are very pleased with the enactment of The Benefits Protection and Improvement Act of 2000 ("BIPA") because it removes uncertainty about the impact of the Health Care Financing Administration's ("HCFA") rate proposal on AmSurg's future financial results."

BIPA made three significant revisions to the original proposal to update the rate setting methodology, payment rates, payment policies and the list of covered surgical procedures, which was published by HCFA in June, 1998. First, BIPA pushes the date on which the proposal becomes effective to January 2002, compared with our most recent expectation of April 2001 and the original implementation date of October 1998. Second, the phase-in period for the proposal has been expanded to four years, while, previously, the proposal was to be implemented either all at once or over a three-year period, depending on the cost survey used. Third, BIPA requires that by January 2003, the proposed payment system be based on data from a new (1999 or later) cost survey taken by Medicare.

"After HCFA's announcement of the proposed rule in 1998, AmSurg estimated, at the time of full implementation, that the proposed ruling would adversely affect the Company's annual net revenues by approximately 4%," continued Mr. McDonald. "Therefore, we believe the phase-in of the proposed prospective ASC payment system over a four-year period should result in a 1% annual net revenue reduction for AmSurg, which is a significant improvement over the original proposal."

This press release contains forward-looking statements. These statements, which have been included in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, involve risks and uncertainties. Investors are hereby cautioned that these statements may be affected by the important factors, among others, set forth in AmSurg's filings with the Securities and Exchange Commission, and, consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, any future modifications of the proposed rule, including the phase-in provisions issued by HCFA that would update the rate setting methodology, payment rates, payment policies and the list of covered surgical procedures for ambulatory surgery centers. AmSurg disclaims any intent or obligation to update these forward-looking statements.

AmSurg Corp. develops, acquires and manages physician practice-based ambulatory surgery centers and specialty physician networks in partnership with surgical and other group practices. At September 30, 2000, AmSurg owned a majority interest in 74 centers and had four centers under development.