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PROJECTED EARNINGS ON TARGET; PROPOSED WORKERS' COMP CHANGES WOULD NOT HAVE MATERIALLY ADVERSE EFFECT

PROJECTED EARNINGS ON TARGET; PROPOSED WORKERS' COMP CHANGES WOULD NOT HAVE
    MATERIALLY ADVERSE EFFECT
    LOS ANGELES, Oct. 1 /PRNewswire/ -- Robert B. Mishkin, president and chairman of the board of CBL Medical Inc. (NASDAQ: CBLM; Warrants: CBLMW), announced today, "CBL's revenues for the third quarter of 1992 are on track with company projections.  If revenues continue in the fourth quarter at the current rate, 1992 will indeed be a record year for both revenues and earnings.  We expect that we will report our operating results for the third quarter in the third week of October."
    Mishkin also stated, "There are several proposed changes to the California Workers' Compensation Law.  If these changes were enacted, there would not be a materially adverse effect on CBL's operations.
    "The management of CBL sensed the legislative climate would at some time change, resulting in limited use and payment of forensic reports in the California workers' compensation system.  Accordingly, we positioned our company to primarily provide treatment and rehabilitation rather than forensic or medical/legal services. Currently, forensic reporting represents less than 5 percent of our total revenue.
    "Further, we continue to lessen our dependence on workers' compensation cases by increasing our revenues from treating patients who have sustained non-work-related accidents.  Occupational medicine represents 60 percent of our total revenue, down from 80 percent two years ago."
    Mishkin went on to say, "One of the proposed changes considers the use of HMOs (Health Maintenance Organizations) and PPOs (Preferred Provider Organizations) to provide managed care to injured workers for the first 90 days.  After 90 days, employees may select a physician of their choice.  The vast majority of workers' compensation patients we see are the severely injured with symptoms and/or disability extending well beyond 90 days.  Thus, even if this provision of the labor code is adopted, I do not foresee a materially adverse effect on the company."
    Ten medical centers, four Work Simulation Centers and one Center for Vocational Rehabilitation Inc. are currently managed by CBL Medical Inc.
    -0-             10/01/92
    CONTACT:  Daryl L. Salrin of CBL Medical, 310-788-5845
    (CBLM CBLMW) CO:  CBL MEDICAL INC. IN:  HEA ST:  CA -- LA011 -- X948  10/01/92
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Publication:PR Newswire
Date:Oct 1, 1992
Words:360
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