Birman Managed Care, Inc. Announces Three New Hospital Contracts.

COOKEVILLE, Tenn.--(BUSINESS WIRE)--Oct. 16, 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 new contracts with hospitals in Indiana, Tennessee, and Virginia. The value of the contracts is estimated at more than $700,000 over a two year period.

Two hospitals have contracted to use Birman's Quality Management Program (QMP), the foundation for the company's compliance-oriented product lines. The third hospital has retained Birman to educate and train a special part of their medical staff known as "hospitalists". Hospitalists are charged with overseeing efficient and quality management of patient care throughout the hospital. The new contracts bring the company's consulting base to 29 hospitals in 12 states.

Birman's Quality Management Program was established to assist physicians in hospital and private-practice settings. Birman provides physician-to-physician education to help physicians to better define a patient's severity of illness and prioritize their treatment objectives. Patients receive more focused care and hospitals achieve clinical regulatory compliance, and appropriate reimbursement for the services they provide. The contract to train 'hospitalists' represents a new market for Birman. Hospitalists are part of a new national trend to increase efficiency in patient care and resource management, which are primary components of Birman's QMP.

David N. Birman, M.D., Chairman, President and CEO of Birman Managed Care, Inc. said, "This is a very exciting time at the company. We spent the past few months developing a new sales strategy under the direction of our Senior Vice President for Corporate Development. Jeff Drake, along with our sales staff, has been doing a great job implementing the program as evidenced by the signing of these new contracts."

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 Hughes & Associates, a licensed pre-certification and utilization review company; and Rehab Partners, a workers compensation Preferred Provider Organization (PPO) in Mississippi.

The information contained herein includes "forward looking statements" as defined in the Private Securities Litigation Reform Act of 1995. The statements by Dr. Birman addressing future operations are to be considered "forward-looking" for purposes of the Act. Investors are cautioned that forward-looking statements involve risks and uncertainties, including general economic conditions, delays and risks associated with the performance of contracts, consumer and industry acceptance and regulatory risks.