Birman Managed Care, Inc. Offers New Professional Services.

COOKEVILLE, Tenn.--(BUSINESS WIRE)--Sept. 30, 1997--BIRMAN MANAGED CARE, INC. (NASDAQ/NNM: BMAN) announced today that the Company will offer its proprietary Quality Management Program (QMP) directly to physicians in private practice. The program offered through its subsidiary, Birman & Associates, Inc., (BIRMAN), until now has been available only to hospitals.

The QMP, used successfully at over 90 hospitals in 17 states over the last five years, works directly with hospital physicians and staff to record more accurately the severity of illness, improve documentation of treatment, and aid regulatory compliance. Unique to the BIRMAN program is its use of physicians and Health Information Managers as the key components of the program.

The new service is specifically designed to assist physicians in private practice now that they are subject to the same federal regulatory scrutiny as hospitals. Under the recently-passed Health Insurance Portability and Accountability Act of 1996, physicians are accountable for the accuracy of their patients' medical records. The new law expands the authority of the federal government to combat potential health care fraud.

BIRMAN's new physician program was developed under the leadership of Dr. Rockey Talley, the Company's newly-appointed Senior Vice President and Chief of Professional Services. The Company recently completed a series of streamlining changes and staff reassignments to address the evolving nature of healthcare. Dr. Talley is Board Certified in Internal Medicine and has worked in private practice and in administrative roles involving health care policy.

Dr. David N. Birman, President and CEO of BIRMAN MANAGED CARE, INC., said the new service is "a natural transition for our compliance program." He added, "This is an exciting new direction for our Company. We will serve a very important need that is now facing private-practice physicians in this rapidly changing regulatory environment."

BIRMAN MANAGED CARE, INC. is a health care compliance, consulting and management Company dedicated to improving the quality of care while reducing costs and enhancing the efficiency of services to the patient. The Company focuses on the physician as the most important factor in health care delivery. Its proprietary Quality Management Program, offered through its Birman & Associates, Inc. Subsidiary, is currently in operation in 29 hospitals in 14 states. In addition, BIRMAN MANAGED CARE, INC. is developing managed health care programs in association with employers, hospitals, physicians, and other health care providers. The Company is licensed to operate an HMO in six southern counties of Mississippi. -0-

This release contains forward-looking statements that involve risks and uncertainties. In addition to historical information, investors should carefully consider the risks associated with an investment in the Company's securities as previously outlined by the Company in its prior filings with the Securities and Exchange Commission.

CONTACT: Jeffrey L. Drake, Srn. V.P.

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Linda Decker, I.R.

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