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PHP HEALTHCARE BUYING THREE SURGERY CENTERS

 PHP HEALTHCARE BUYING THREE SURGERY CENTERS
 ALEXANDRIA, Va., April 20 /PRNewswire/ -- PHP Healthcare


Corporation (NASDAQ-NMS: PHPH), announced today that Paragon Ambulatory Surgery, Inc., a joint venture of PHP and Shamrock Investments, has acquired majority interests in two freestanding surgery centers in Jacksonville, Fla., and entered into an agreement to acquire interests in a third for approximately $5 million, plus future considerations, according to Charles H. Robbins, PHP Healthcare chairman and president.
 Two of the centers -- Jacksonville Surgery Center and Doctors Special Surgery Center -- have been operating for more than four years. The third, Westside Surgery Center, was licensed on April 2, 1992. Paragon will operate the centers, which are expected to have revenues in excess of $9 million in the fiscal year ending April 30, 1993, Robbins said.
 "The acquisitions in Jacksonville represent Paragon's first step in its goal to become, within two years, one of the nation's premier operators of freestanding ambulatory surgery centers in the United States," Robbins said. "The plan is to acquire and develop six to eight centers in the first 18 months and six to 10 centers in each subsequent year."
 Paragon was formed in Los Angeles in 1991 to help fulfill the nation's rapidly growing need for freestanding ambulatory surgery centers. The joint venture is owned by PHP Healthcare Corporation, of Alexandria, and Shamrock Investments, a leading health care financial advisory firm based in California.
 PHP Healthcare specializes in providing primary outpatient care to military and government beneficiaries and dependents. It recently reported record earnings for the nine months ended Jan. 31, 1992. Shamrock principals have managed over $5.0 billion in transactions in the health care industry.
 Robbins said his company invested as majority owner in Paragon and the emerging market niche because it serves as a natural extension of PHP's principal business of serving the government sector into the private sector.
 "Paragon fits within one of PHP Healthcare's long-term objectives, which is to provide health care services to the private sector," Robbins said. "Our company has grown because of its approach to managed health care and emphasis on both quality and cost containment in the public sector. We are excited about the potential for Paragon and look forward to its growing contribution to PHP revenues and earnings."
 Jack M. Mazur, senior vice president of PHP Healthcare, estimates that the Jacksonville acquisitions will contribute positively to PHP earnings during the first full year of operation by Paragon. Given various population, demographic and economic forecasts, the contribution from the Jacksonville market should increase in subsequent years, he said. Future acquisitions will have varying degrees of impact, based on local market and other factors, he said.
 Mazur said rapid growth is possible because there is a definite need for freestanding surgery centers throughout the United States.
 "This is being driven by a combination of the aging of the population, new technology and a nationwide effort to control health care costs," Mazur said. "Today, approximately 50 percent of all surgeries are performed on an outpatient basis. By 1995, this figure should increase to 60 percent."
 Charles P. Reilly, an officer and director of Paragon, said the organization will be targeting areas where the needs are greatest, based on population and demographics, such as Jacksonville. He said Paragon has assembled a management and staff with unequaled experience in the industry. Its experts have worked with Fortune 100 companies and major health care providers and managed care companies throughout the United States. The central organization will provide levels of experience and expertise not typically available at individual surgery centers.
 "The Paragon approach is designed to achieve economies of scale and efficiencies in financing, personnel services, billing, accounts receivable management, regulatory compliance, business development and marketing," Reilly said. "We also ensure that each center has the best facilities and most advanced medical technology available."
 Paragon is located at 2049 Century Park East, Suite 3330, Los Angeles, Calif. 90067. Telephone is 213-551-1301. PHP Healthcare Corporation main offices are at Mark Center, 4900 Seminary Road, 12th Floor, Alexandria, Va. 22311. Telephone is 703-998-7808.
 -0- 4/20/92
 /CONTACT: Charles H. Robbins, president and chairman, or Jack M. Mazur, senior vice president, PHP Healthcare Corporation, 703-998-7808/ CO: PHP Healthcare Corporation ST: Virginia IN: HEA SU: JVN


TW -- DC003 -- 9936 04/20/92 10:13 EDT
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Date:Apr 20, 1992
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