American Health Properties Inc. Core Group announces Community Health Systems as new operator for three acute care properties.

DENVER--(BUSINESS WIRE)--Aug. 19, 1996--The Core Group of American Health Properties, Inc. (NYSE:AHE) reported that Community Health Systems is now the operator of three of the Core Group's acute care properties as a result of Community's announced acquisition of Dynamic Health.

As part of this transaction, Dynamic's obligations under the leases are now guaranteed by Community.

The three properties include the 66-bed Chesterfield General Hospital in Cheraw, South Carolina, the 108-bed Marlboro Park Hospital in Bennettsville, South Carolina and the 104-bed Cleveland Regional Medical Center in Cleveland, Texas.

Dynamic was founded in 1992 by several former American Medical International executives with a strategy to acquire acute care hospitals in smaller suburban and rural communities. The success of Dynamic's strategy and its accomplishments with its five rural hospitals made it an attractive acquisition for Community. Community also has been executing a rural hospital strategy and will now have a total of 43 hospitals with the Dynamic acquisition. Community was purchased recently by Forstmann Little & Co. for a reported $1.4 billion.

Joseph P. Sullivan, President and Chief Executive Officer of the Company, stated that: "American Health Properties commends Dynamic for its accomplishments. We are very pleased to have Community as an operator and look forward to a strong relationship with them. This transaction further strengthens our core portfolio, and reflects the benefits of our investment strategy of identifying strong operators at an early stage and assisting them in building their companies."

AHE is a real estate investment trust (REIT) specializing in quality health care facilities. The Company currently has in excess of $600 million of investments in health care facilities located in 16 states.

CONTACT: American Health Properties

Joseph P. Sullivan, [phone]