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UNITED AMERICAN HEALTHCARE CORPORATION REPORTS SECOND QUARTER RESULTS; SEES STRONG SECOND HALF

 DETROIT, Feb. 5 /PRNewswire/ -- United American Healthcare Corporation (NYSE: UAH) today announced results for the second quarter ended Dec. 31, 1992, which include a 19 percent rise in management fees. The company also said it has been notified of a 10 percent rate increase for the Michigan Medicaid enrollees in OmniCare Health Plan, an HMO it manages.
 For the quarter, management fees rose to $6,588,545 from $5,556,608 in the year earlier quarter. Total revenues were up 6 percent to $6,782,236 from $6,394,475 a year earlier. Management fee revenue in the quarter included $449,000 from OmniCare which United American received as its share of savings by administering a coordination of benefits program. Revenue in the year earlier quarter included a $612,098 payment for the development of a new product for OmniCare.
 United American reported earnings of 21 cents a share on net earnings of $1,050,984 compared to 21 cents a share on net earnings of $1,086,688 a year earlier.
 For the half, UAH reported a 13 percent increase in total revenues to $13,790,439 from $12,206,544 a year earlier. Management fees rose 20 percent to $13,375,638 from $11,178,551 during the comparable period. Management fees included approximately $505,000 in payments from OmniCare for savings resulting from the administration of a coordination of benefits program.
 Net earnings for the first half were up 4 percent to $2,380,785, or 47 cents. This compares to $2,286,660, or 45 cents a year earlier. There were 5,060,393 shares outstanding in all reporting periods.
 "United American continues to demonstrate its ability to increase management fees from the HMOs it manages," said Julius V. Combs, M.D. "Last year's second quarter revenues included the $600,000 product development fee that is not included in this year's second quarter, yet we see an overall increase in revenues.
 "This year's management fee revenue includes payments from OmniCare for coordination of benefits savings. These are savings we achieved for OmniCare of more than $4.5 million by identifying primary payers other than OmniCare. Since this is an ongoing program, we expect that this will be a continuing revenue benefit to United American as we provide a cost effective program for OmniCare," Dr. Combs continued.
 "It is also significant that enrollment is up 8 percent to 115,828 for January 1993 for the two HMOs managed. Management believes a higher HMO enrollment and increases in rates will positively impact earnings for the rest of fiscal 1993. This indicates that our investment in advertising and promotion during the first half was successful.
 "The rate increases referred to apply to both commercial and Medicaid enrollees. We have, as a matter of significance, just received notification of a 10 percent rate increase for the Michigan Medicaid population effective Jan. 1, 1993," said Dr. Combs.
 "In addition to managing our HMO clients, we are devoting significant resources to leveraging our managed care expertise. The reported expenses reflect some which were incurred to pursue additional business opportunities. With the high level of activity, there are encouraging signs that this will translate into business in the areas we've targeted. Our recently announced letter of intent to enter into a joint venture with CapitalCare, the Blue Cross-Blue Shield HMO in Washington, D.C., is just one indicator of the kinds of opportunities we are pursuing," Dr. Combs said.
 "United American has been called a 'Clinton Stock,' said Dr. Combs. "We have been working at this business 20 years. The new administration's emphasis on managed care is encouraging to us."
 During the quarter ended Dec. 31, 1992, the company changed its accounting estimate for the recognition of certain promotion and advertising costs. The change in estimate will more accurately match the expense to the period of economic benefit. The effect of the change was to increase net earnings for the quarter by $320,000, which is net of taxes of $182,000 or 6 cents per share.
 Total revenues for both the quarter and half no longer reflect CountyCare, United American's program with Wayne County, which has been discontinued for lack of funding by the Legislature of the state of Michigan as of April 30, 1992.
 United American Healthcare Corporation is a health care management company. UAH provides a full range of services to two health maintenance organizations -- OmniCare Health Plan in Southeast Michigan and Personal Physician Care of Ohio, based in Cleveland. The company's strategy is to expand its expertise into avenues such as Third Party Administrator services as it has done with Bing Steel Inc. and Superb Manufacturing, Inc.
 KEY HMO RATIOS
 MANAGED CARE ENROLLMENT January,
 1993 1992
 OmniCare Health Plan 95,497 90,429
 Personal Physician Care 20,331 16,229
 Totals 115,828 106,658
 MEDICAL LOSS RATIOS Year ended December 31,
 1992 1991
 (estimated) (audited)
 OmniCare Health Plan 81 pct 81 pct
 Personal Physician Care 79 pct 80 pct
 UNITED AMERICAN HEALTHCARE CORPORATION AND SUBSIDIARY
 CONSOLIDATED STATEMENTS OF EARNINGS
 (Unaudited)
 Three months ended
 December 31,
 1992 1991
 Revenues
 Management fees $ 6,588,545 $ 5,556,608
 Product development fee 50,000 612,098
 Interest and other 143,691 225,769
 Total revenues 6,782,236 6,394,475
 Expenses
 Salaries, fringe benefits
 and payroll taxes 2,774,873 2,450,170
 Promotion and advertising 692,642 725,267
 Depreciation and amortization 147,200 99,536
 General, administrative and
 other operating expenses 1,593,537 1,373,328
 Total expenses 5,208,252 4,648,301
 Other
 CountyCare capitation fees 0 2,914,907
 CountyCare medical expenses 0 3,074,110
 Income (loss) from CountyCare
 Program 0 (159,203)
 Earnings before income
 tax expense 1,573,984 1,586,971
 Income tax expense 523,000 500,283
 Net earnings $ 1,050,984 $ 1,086,688
 Net earnings per common
 share $ .21 $ .21
 Shares Outstanding 5,060,393 5,060,393
 Six Months ended
 December 31,
 1992 1991
 Revenues
 Management fees $13,375,638 $11,178,551
 Product development fee 50,000 612,098
 Interest and other 364,801 415,895
 Total revenues 13,790,439 12,206,544
 Expenses
 Salaries, fringe benefits
 and payroll taxes 5,439,734 4,814,772
 Promotion and advertising 1,478,900 1,144,303
 Depreciation and amortization 272,192 203,974
 General, administrative and
 other operating expenses 3,044,828 2,602,995
 Total expenses 10,235,654 8,766,044
 Other
 CountyCare capitation fee 0 6,025,092
 CountyCare medical expenses 0 6,106,249
 Income (loss) from CountyCare
 Program 0 (81,157)
 Earnings before income tax
 expense 3,554,785 3,359,343
 Income tax expense 1,174,000 1,072,683
 Net earnings $ 2,380,785 $ 2,286,660
 Net earnings per common share $ .47 $ .45
 Shares Outstanding 5,060,393 5,060,393
 -0- 2/5/93
 /CONTACT: Dr. Julius V. Combs, Chairman, United American Healthcare Corporation, 313-873-2852; or Dixie Watterson, 708-564-5610, Mark Perlgut, 212-580-4141, or Earle Brown, 813-796-1452, all of The Investor Relations Company, for United American Healthcare Corporation/
 (UAH)


CO: United American Healthcare Corporation ST: Michigan IN: HEA SU: ERN

SB-JG -- DE001 -- 3364 02/05/93 08:20 EST
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