Birman Managed Care Awarded Two Contracts in Kansas; New Consulting Product Introduced in an Outpatient Setting.

COOKEVILLE, Tenn.--(BUSINESS WIRE)--Oct. 11, 1999--

BIRMAN MANAGED CARE, INC. (Nasdaq:BMAN), a physician-driven health care consulting and management company, announced today that its subsidiary, Birman Consulting Group, has been awarded a new contract with a hospital in Kansas and has begun an expanded consulting service with an existing client in the same region. Together, the contracts are valued at a little more than $200,000 for one year. The new client contract has a stipulated one-year extension for approximately $140,000.

Both Kansas hospitals have contracted to use Birman's Quality Management Program (QMP). One is for an inpatient hospital setting, which represents the distinctive services Birman provides at now 19 hospitals in 11 states. The other is for the QMP to be applied in an outpatient clinic.

The significance of the clinic contract is that it opens the door for a new product line, physician office consulting. Birman physicians will work with the clinic's physicians to accomplish the same objectives as in the hospital setting. Patients will receive more focused care; the clinic will achieve clinical regulatory compliance, and will then earn appropriate reimbursement for the services they provide.

The new hospital contract is for one year with a built-in extension for a second year. The clinic program is a comprehensive one-year program that will be carried out in two phases. It begins with a baseline analysis of current staff physician practices as these relate to expressing patient conditions appropriate to severity of illness, the level of care given, and issues regarding regulatory compliance. Birman Consulting Group will then prepare an educational seminar for all staff physicians. This will launch the six-month observation and training phase where physicians will receive one-on-one training. Phase II, to be carried out in the later part of the contract, will include a reevaluation and monitoring of the program's success.

David N. Birman, MD, Chairman, President and CEO of Birman said, "The new contracts are a positive step. With the clinic contract, we expect to demonstrate a value beyond what we're doing in the hospital. Our desire is for this to become a model for a sales strategy to introduce similar services for our current and past clients. We then hope to extend the model to make it financially feasible to provide these services in other free-standing physician offices and outpatient settings. This would represent a new revenue stream for the company."

BIRMAN MANAGED CARE, INC. is a health care consulting company with a physician-focused core competency. Through its subsidiary, Birman Consulting Group, the Company offers a range of compliance products and quality management services customized for health care providers including hospitals and physician offices.

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.