Integrated Healthcare Systems Embarks on New Internet Based State-Wide Hospital Risk and Quality Management System.

RESTON, Va.--(BW HealthWire)--Feb. 11, 1999--8:00 am--Integrated Healthcare Systems, Inc. (OTC Bulletin Board: IGHS), a national developer of integrated quality improvement and risk management software systems for the healthcare industry, today announced it has been awarded a state-wide contract, projected to be in excess of $1 million, to automate the collection of hospital risk incidents and to then implement a centralized risk management and quality improvement system for the member hospitals of the Alabama Hospital Association Trust (AHAT).

Integrated Healthcare Systems agreement with AHAT creates an Internet-based risk and quality management healthcare data collection system for 85 statewide hospitals. Risk and quality data will be collected and encrypted, using IHS's new I-Link Enterprise interface engine, to a central management data warehouse server. This system will allow AHAT and its hospital members Internet access to timely risk event and quality improvement information.

This agreement between Integrated Healthcare Systems and AHAT produces the first statewide, Internet-based healthcare risk and quality data collection and management system of its kind.

Integrated Healthcare Systems president, Alan Grofe, said, "With the help of the Alabama Hospital Association Trust, we are beginning to recast the way healthcare data is being collected and acted upon. We are transforming a statewide manual risk data submission process into a fully automated one extending on into full quality improvement. By providing AHAT members with Internet access to a state-wide, central source of risk and quality information, we are producing a significant improvement in the hospitals querying, tracking, reporting and improvement capabilities."

Melvin L. Capell, senior vice president at Alabama Hospital Association Trust stated, "It's not enough to just know about healthcare quality problems. This system will give our members tools to improve healthcare quality and prevent risk events and quality related problems."

The Alabama Hospital Association Trust is an insurance trust company providing liability insurance for hospitals and physician practices throughout the State of Alabama.

Integrated Healthcare Systems, Inc. designs, develops, markets and maintains integrated quality and risk management systems for the healthcare industry. The Company's systems are helping hospitals and hospital associations nationwide build focused risk reduction and quality improvement programs by identifying inconsistent elements and trends, and in turn, developing effective process improvement strategies. Integrated Healthcare Systems, Inc. is a publicly owned company traded on the OTC Bulletin Board under the symbol -- IGHS.

For more information visit Integrated Healthcare Systems web site at http://www.integratedhealthcare.com.

This announcement may contain, in addition, to historical information, certain forward-looking statements that involve risks and uncertainties. Such statements reflect management's current views and are based on certain assumptions. Actual results could differ materially from the assumptions currently anticipated.