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HEALTH RISK MANAGEMENT AND SELECT CARE SIGN AGREEMENT FOR JOINT DISTRIBUTION OF SERVICES

 HEALTH RISK MANAGEMENT AND SELECT CARE SIGN AGREEMENT FOR JOINT
 DISTRIBUTION OF SERVICES
 Opens Door for First Guideline Software to be Placed
 Directly in Physicians' Offices
 MINNEAPOLIS, May 6 /PRNewswire/ -- Health Risk Management, Inc. (NASDAQ: HRMI) (HRM), a full-service supplier of managed care and health care information services and Select Care, a preferred provider and managed care organization, announced today that they have signed a contract to jointly distribute their combined services. By offering services jointly, HRM and Select Care can now offer local and national clients electronically integrated care management, price management and claims management systems, as well as an enhanced nationwide preferred provider network.
 The contract anticipates multiple phases in this relationship, with the linking of operating systems and joint distribution of services representing the first phase. In the second phase, the Select Care medical staff will participate with HRM's Institute for Healthcare Quality in its ongoing updates, reappraisals and enhancements of its 400 health care practice guidelines, and other continuous quality improvement processes and outcome management related to medical care. In a third phase, HRM and Select Care anticipate that the Select Care network will be the first of many in HRM's nationwide PPO networks to begin placing HRM's health care practice guideline software directly in the physicians' offices.
 HRM's nationwide PPO network of 65,000 physicians and over 1,000 facilities has been enhanced by the addition of Select Care's 3,000 physicians and 50 hospitals, including some of the most prestigious and well-respected tertiary care centers and teaching hospitals in the Upper Midwest. Select Care gains a link with a 68,000 physician-strong nationwide PPO, enabling it to serve national, as well as regional clients.
 HRM provides health care management services covering approximately 5 million lives. Together HRM and Select Care now serve approximately 270,000 PPO enrollees.
 Health care practice guidelines provide a scientifically valid foundation and a technical base for promoting quality care and appropriate control of health care services, as well as resources. With the health care practice guidelines representing the core of care management services, electronically integrated with price management and claims management systems, Select Care and HRM are able to achieve high levels of effectiveness, accuracy and customer service responsiveness.
 "This alliance is unique because our approach is philosophically and operationally different from any other managed care organization currently in operation," said Gary T. McIlroy, M.D., HRM chair and chief executive officer. "Our organizations are founded on the principle that the appropriate and optimal medical decision must drive the care management process. This has enabled both of our organizations to achieve reputations for high quality care. We believe that by joining forces, we will be able to achieve higher standards of process control which are necessary prerequisites for appropriate and favorable health care outcomes."
 "High quality providers are often leaders in adopting new strategies or mechanisms with which to enhance their practices," said Jack G. Davis, Select Care president and chief executive officer. "Our physician leadership, both practicing and administrative, has assessed the practice guidelines developed by HRM's Institute for Healthcare Quality, and has found these standards to be well researched, scientifically formulated, insightful and practical in application -- while providing significant physician latitude in their actual use. We are pleased to be able to offer our clients additional assurances of quality and effectiveness through sophisticated practice parameters and integrated management tools. This announcement signals the beginning of a significant long-term relationship."
 Founded in 1977, HRM serves employers, insurance companies, unions, governmental units, provider organizations and policy makers in the United States and Canada. Headquartered in Minneapolis and Edmonton, Alberta, HRM has offices in Atlanta; Chicago; Kalamazoo, Mich.; Los Angeles; Shrewsbury, N.J. and Vancouver, British Columbia.
 Founded in 1983, Select Care is one of the Twin Cities' largest and fastest growing preferred provider organizations with 170,000 eligibles. From its Bloomington, Minn., headquarters, Select Care manages its provider network in Minnesota, Wisconsin and North Dakota.
 Health Risk Management, Inc.
 Founded in 1977 by McIlroy, and Marlene Travis, president, HRM is a managed care and health care information and services company operating in the United States and Canada. HRM's extensive databases and proprietary health care practice guidelines provide a core from which the company evaluates and manages clients' health care benefits (medical and behavioral, inpatient and outpatient) from diagnosis through claims administration and payment. HRM offers a complete line of electronically integrated health care management services including health care benefit planning; information analysis and management; coordinated care management; diagnosis confirmation, prospective optimal treatment identification, appropriate facility and resource evaluation; preferred provider networks; case-by-case fee negotiation; bill review; claims payment and health care communication strategies. HRM serves employers, insurance companies, unions and governmental units, and covers 5 million lives. HRM will soon offer its health care practice guidelines to PPOs, HMOs, insurance companies and other managed health care organizations that have not had access to resources that manage actual medical care for optimal outcomes and provide a baseline tool for continuous quality improvement.
 Select Care
 Headquartered in Bloomington, Select Care is one of the Twin Cities' largest and fastest growing preferred provider organizations serving enrollees in Minnesota, Wisconsin and North Dakota. Select Care's comprehensive network of top physicians numbers approximately 3,000 and includes primary care physicians, medical and surgical specialty care physicians and pediatric medical and specialty care physicians. The region's leading hospitals, including those in Health East, Health One and LifeSpan systems are among the 50 tools to monitor medical effectiveness and appropriateness -- before, during and after treatment, including preadmission certification, concurrent review, retrospective review, claims preprocessing, case management, case management identification, bill review, provider profiling, employer specific reports and quality assurance. Additionally, Select Care offers focused provider networks, including pharmacy, chiropractic, behavioral health and vision services. Select Care maintains linkages with a number of major insurance carriers, third party administrators and Taft-Hartley Trusts.
 -0- 5/6/92
 /CONTACT: Nancy Hurd of Health Risk Management, 612-829-3749, or Jean Price of Select Care/LifeSpan, 612-863-5607/
 (HRMI) CO: Health Risk Management, Select Care ST: Minnesota IN: MTC SU: JVN


AL -- MN006 -- 7057 05/06/92 11:50 EDT
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Date:May 6, 1992
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