Birman Managed Care, Inc. and Preferred Medical Marketing Corporation Form Alliance.

COOKEVILLE, TN, and CHARLOTTE, NC--(BUSINESS WIRE)--May 13, 1998--

Birman to Market Highly-Specialized Clinical

Resource Management Product

Product Expected to Enhance Managed Care Relationships

Birman Managed Care, Inc. (Nasdaq:BMAN), a physician-driven health care consulting and management company, and Preferred Medical Marketing Corporation (PMMC), a health care consulting and software company, announced they have signed an exclusive three-year agreement to market a newly-developed Clinical Resource Management Product (CRMP). The product will be targeted to hospitals operating in today's competitive managed care marketplace.

Using CRMP, Birman physicians will evaluate clinical resource utilization profiles and assist hospitals and their client medical staff in achieving clinical and cost efficiencies. The program is expected to generate improved clinical and financial performance and competitive positioning for the client in managed care environments.

The CRMP combines Birman's physician-focused consulting expertise with PMMC's ability to analyze and compare hospital data through specialized software and actuarial techniques. CRMP's primary function is to maximize managed care relationships and ultimately improve patient care by evaluating a hospital's overall clinical resource consumption, against performance demanded by today's managed care marketplace. Birman's hospital clients will receive an action plan report detailing these findings, which include resource utilization profiles by Diagnostic Related Group (DRG). Findings will benchmark hospital performance against industry trends in markets heavily penetrated by managed care.

David N. Birman, MD, Chairman, President and Chief Executive Officer of Birman Managed Care, Inc., said, "Our Company has applied considerable efforts and resources over the past twelve months to develop new products, like CRMP, that enable health care providers to survive in today's competitive environments. Birman's approach with physician-to-physician consulting, aligned with PMMC's specialized hospital data management and analysis creates a powerful tool, which enlists the support of a hospital's medical staff."

Roger L. Shaul, Jr., President and CEO of Preferred Medical Marketing Corporation said, "When PMMC developed its Clinical Resource Utilization Profiles, we found that hospital administrators quickly saw the value of this information. However, they were unable to devote the time and internal resources to enlist support from the medical staff to take the program further to improve the management of patients. The Birman/PMMC alliance provides clinical components essential to effect change and improve patient care. For years, PMMC has helped more than 250 hospitals improve their strategies related to managed care by analyzing and comparing market-based data. This alliance will take data analysis to a new stage of application, ultimately improving patient care."

Birman Managed Care, Inc. is a physician-based health care consulting company offering a range of compliance products customized for hospitals and physician offices. The Company also operates Care3, its HMO in Mississippi; Hughes & Associates, a licensed pre- certification and utilization review company; and Rehab Partners, a workers compensation Preferred Provider Organization (PPO) in Mississippi.

Preferred Medical Marketing Corp. is a software and consulting company, which determines, refines and implements strategies for health care providers to cope with managed care. PMMC offers a range of strategic consulting products and software related to managed care for hospitals and other health care providers. Its major products include Strategic Action Plans For Managed Care and PMMC ContractPro, a leading contract management software product for hospitals and physicians.

Forward Looking Statements: Statements in this news release looking forward in time are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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.

CONTACT: Birman Managed Care, Inc.

Jeff Drake

Senior Vice President

Corporate Development

Birman Managed Care, Inc.

[phone]

or

Preferred Medical Marketing Corp.

Roger L. Shaul, Jr.

President and CEO

[phone]

or

Morgen-Walke Associates

Cheryl Schneider, Stacey Levitz

Press: Michael McMullan

[phone]