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PHP HEALTHCARE ANNOUNCES LOSS FOR THE YEAR

 ALEXANDRIA, Va., July 29 /PRNewswire/ -- PHP Healthcare Corporation (NYSE: PPH) today announced that it expects a loss of approximately $3.8 million for its fiscal year ended April 30, 1993, on sales of $126 million. PHP had previously announced, on June 28, 1993, that it anticipated a significant loss in its fourth quarter, but expected to report a profit for the year. The company has determined, however, that additional costs should be recognized in fiscal 1993. These costs principally relate to the write-off of amounts associated with a private sector project, the write-off of costs associated with the Champus Reform Initiative in California and Hawaii effort (which contract was recently awarded to another bidder), the completion of long-term government contracts and the start-up of newly awarded contracts. In addition, the company has written down the value related to property held for sale and recorded a loss associated with a recent sublease of office space. The company expects to release audited financial statements upon the filing of its annual report with the SEC within the next two weeks.
 After four years of increasing sales and profits, fiscal year 1993 was a transition year for PHP. As previously announced, the company is being transformed from a primarily government contractor to a full- service, primary care-based, managed health care company. During the year, the company was successful in winning a substantial portion of its military contracts that were up for recompetition, increasing its government contract backlog to about $400 million. PHP now has entered the private sector market through the acquisition of outpatient surgery centers, the finalization of an agreement to acquire a substantial controlling interest in an HMO operating in the District of Columbia, the acquisition of a consulting firm specializing in the design and development of provider networks, and the initiation of operations at full service primary care centers for GTE Corporation and Bethlehem Steel. These centers are the cornerstone of PHP's Integrated System of Care (ISOC), which is a primary care-based managed care delivery system. In addition, the company has commenced the operation of two occupational health centers for Chrysler Corporation.
 Chairman Charles H. Robbins reaffirmed his commitment to the transformation of the company in order to capitalize on the changes taking place in the nation's health care delivery system. Robbins stated, "This transformation is costly, but it is essential to the company's long-term growth." The company plans to continue to pursue aggressively its private sector program development activity with business coalitions, HMOs, insurers and major employers.
 -0- 7/29/93
 /CONTACT: Charles H. Robbins, president and chairman, or Anthony M. Picini, vice president/finance, PHP Healthcare Corporation, 703-998-7808/
 (PPH)


CO: PHP Healthcare Corporation ST: Virginia IN: HEA SU: ERN

DC-TW -- DC025 -- 7450 07/29/93 17:06 EDT
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Publication:PR Newswire
Date:Jul 29, 1993
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