Birman Managed Care, Inc. Announces Hospital Contract in Georgia; Renews Contract with Ohio-based Hospital.

COOKEVILLE, Tenn.--(BUSINESS WIRE)--March 27, 1998--Birman Managed Care, Inc. (NASDAQ: BMAN), a physician-driven health care consulting and management company, announced today that its subsidiary, Birman & Associates, Inc., has been awarded a two-year contract with a hospital in Eastern Georgia.

Additionally, the Company has signed a one-year contract renewal with an Ohio-based hospital. The value of these two contracts totals approximately $900,000. Additional terms of the agreements were not disclosed.

The contracts at both hospitals enable Birman to utilize its Quality Management Program (QMP) which is the foundation for the Company's compliance-oriented product lines. Birman established its quality management program to benefit physicians, both in hospital and private-practice settings. The Birman physicians evaluate the client's medical documentation process in order to more completely define a patient's illness, and prioritize their medical problems and objectives.

Birman & Associates uses a 'proactive problem and plan' approach to the medical documentation. Birman-trained physicians educate their client physicians and hospitals to use the medical record as a means to define disease, record the severity of an illness, maintain regulatory compliance, and to identify the appropriate resources necessary to effectively manage patient care.

David N. Birman, M.D., Chairman, President and CEO of Birman Managed Care, Inc., said, "The Birman organization believes that medical documentation is the primary tool physicians use to appropriately direct the practice of medicine. This unique technique ultimately benefits patients and enables hospitals to proactively address their global responsibilities which includes, clinical resource management, quality of care, appropriate reimbursement, and best patient outcomes."

Dr. Birman added, "The core competencies of Birman trained physicians have become the driving force of our competitive edge and set us apart from our competition. We believe solving problems for patients does not start with the payer, but begins with understanding patient problems. Thorough and accurate documentation by the physician dictates proper resource utilization, which ultimately improves the quality of patient care."

The Birman Quality Management Program was developed to more accurately assess and record the severity of illness, improve clinical documentation, and to aid with hospital compliance requirements through physician and hospital staff education. In conjunction with this, Birman assists their clients in remaining current with Federal and State regulatory guidelines.

Birman Managed Care, Inc. also operates Care3, their HMO in Mississippi, as well as Hughes & Associates, a licensed pre-certification and utilization review company in Georgia; and Rehab Partners, a workers' compensation Preferred Provider Organization (PPO) in Mississippi.

CONTACT: Birman Managed Care, Inc.

Jeff Drake, 931/372-7800

or

Morgen-Walke Associates, New York

Cheryl Schneider, Stacey Levitz

Press: Michael McMullan

212/850-5600