American Family Care and ACHES Insurance Services announce innovative partnership; African-American community to benefit from alliance.

SAN FRANCISCO--(BW HealthWire)--June 12, 1997--American Family Care and ACHES Insurance Services, Inc. announced today that they are forming an innovative alliance to provmunity organizations.

American Family Care lthcare to individuals who receive Medi-Cal benefits and to those who transition back into the workforce without healthcare coverage.

ACHES ("African-American Church Health & Economic Services") is a licensed insurance broker, speund community programs and services. The Foundation will be managed by church and community leaders.

Commenting on today's announcement, Ernest A. Bates, M.D., chairman of ACHES, said: "We are very excited about our alliance with American Family Care. Their healthcare coverage offers excellent benefits, competitive deductibles and co-payments, and a network of physicians and other medical providers that is convenient to and especially sensitive to the needs of the African-American community.

"AFC's experience and established outreach will help ACHES fulfill many aspects of our mission, which is to provide improved access by African-Americans to quality, affordable healthcare; to increase access by African-American physicians to patients insured by quality healthcare plans; and to share the economic benefits of our efforts back with the community which support ACHES."

Also commenting on today's announcement, J. Mario Molina, M.D., president of Molina Medical Centers, said, "Providing healthcare services to individuals who do not readily have access to quality care is an ongoing goal at American Family Care. Our partnership with ACHES provides the perfect opportunity to fulfill that goal. ACHES should be commended for its efforts to not only increase access to healthcare services for the African-American community, but also for strengthening the foundation of that community."

In 1995, Molina Medical Centers was awarded the commercial provider contract in California's Riverside and San Bernardino Counties under the state's two-plan model for providing managed healthcare to Medi-Cal beneficiaries. Molina Medical has more than 17 years of experience servicing the Medi-Cal community. Under the two-plan model contract Molina Medical's enrollment in both counties has the potential to grow from 32,000 to 200,000 within two years.

AFC provides healthcare for non-Medi-Cal and non-Medicare enrollees in the following California counties: Los Angeles, Riverside, San Bernardino, Sacramento, Yolo, Madera and El Dorado, and in Utah.

ACHES Insurance Services Inc. is a subsidiary of San Francisco-based American Shared Hospital Services, a publicly owned company with interests in mobile and shared medical diagnostic imaging, radiosurgery and insurance services (AMEX, PCX:AMS).

CONTACT: For American Family Care

The Perry Group

Kassy Perry, 916/658-0144

or

For ACHES Insurance Services Inc.

Richard Magary, 415/291-3074 or 800/224-3714

or 415/788-5300