Birman Managed Care, Inc. Announces New HMO Contract -- Company Also Signs New Hospital Contract in Virginia --.

COOKEVILLE, Tenn.--(BUSINESS WIRE)--June 25, 1998--Birman Managed Care Inc. (Nasdaq:BMAN), a physician-driven health care consulting and management company, announced today that its HMO subsidiary, Care3 Inc. has been awarded a managed care contract in the gaming industry along the Mississippi Gulf Coast.

The contract, effective May 1, 1998, is valued in excess of $1 million annually. In addition, under its Birman & Associates subsidiary, the company has been awarded a two-year contract with a Virginia hospital, valued at approximately $360,000. Since January, Birman has signed 10 new hospital contracts, bringing its client base to 25 hospitals in 12 states.

David N. Birman, MD, Chairman, President and Chief Executive Officer of Birman Managed Care Inc. said, "Both the new HMO and hospital contracts represent our commitment to grow our business base. Under Care3, we are establishing a health plan founded on three essential building blocks, which include, the member, high-quality providers and the plan itself. As we continue to administer our corporate philosophy `what is best for the patient is best for the entire health care industry', it is our goal to work with the physician and ancillary staff to enhance compliance and quality goals of the excellent care they are already providing."

Care3, Birman's first HMO, began enrolling members in August 1997. Care3's health plan is designed to provide high-quality and cost-efficient health care by aligning the interests of physicians and their patients.

As it relates to Birman & Associates' contract in Virginia, Birman will implement its Quality Management Program (QMP). Specific to this program is the use of Birman-trained physicians in their clinical setting. The fundamental application of Birman's QMP is to accurately determine the patient's severity of illness, enhance quality, focus on resource utilization management, meet regulatory standards, and assure hospitals receive appropriate reimbursement.

Birman Managed Care, Inc. is a health care consulting company with a physician focused core competency. Through its subsidiary, Birman & Associates, the company offers a range of compliance products and quality management services customized for health care providers including hospitals and physician offices. The company also operates Care3, its HMO in Mississippi; as well as Hughes & Associates, a licensed pre-certification and utilization review company; and Rehab Partners, a workers compensation Preferred Provider Organization (PPO) in Mississippi.

    CONTACT: Birman Managed Care, Inc.
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