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CAREMARK SIGNS AGREEMENT TO ACQUIRE CRITICAL CARE AMERICA; $175 MILLION TRANSACTION TO BRING GREATER COST EFFICIENCIES TO HOME CARE

 NORTHBROOK, Ill., Jan. 17 /PRNewswire/ -- Caremark International (NYSE: CK) today announced that it has reached a definitive agreement with Medical Care America, Inc. (NYSE: MRX) to acquire the assets of its home health care business, Critical Care America. The acquisition will be integrated into Caremark's existing home care business, providing payors with more cost-effective services essential in the changing health care market.
 Caremark will pay $175 million in cash, and the acquisition is expected to be completed by April 1, subject to government review under the Hart-Scott-Rodino Act. Both boards of directors have approved the transaction.
 "This transaction will integrate two of the nation's highest quality home care companies," said C.A. Lance Piccolo, Caremark's chairman and chief executive officer. "By combining our resources, we have the opportunity to deliver quality care more cost-effectively, providing improved services to patients and physicians and greater value to payors. This is critical at a time when managed care is changing our marketplace and increased efficiencies are being sought."
 Piccolo said the two home care businesses will develop an integration plan to carefully review and combine the resources and assets of both organizations.
 Said Donald E. Steen, Medical Care America's president and chief executive officer, "This move will allow us to focus resources on our surgery center business. A prime concern in weighing this transaction was quality patient care. In Caremark, we identified an outstanding organization that will assure continued excellent patient care and support."
 Piccolo said the combined operations will strengthen Caremark's ability to develop and offer new therapies, services and managed care products for home patients. He also said the outstanding reputation and patient focus of both Caremark and Critical Care America will help assure continued quality care through the integration process and beyond.
 Caremark has 81 home care branches serving all 50 states; Critical Care America has 44 branches serving 24 states. Both companies provide nutritional and drug infusion therapies, supplies, nursing support and other vital services to home patients with cancer, HIV/AIDS, digestive disorders, organ transplantation and other serious conditions.
 Caremark International Inc. is a leading provider of alternate site health care, marketing a broad range of therapies and services throughout the United States and in other countries. These services include home health care, prescription drug benefit management, physician practice management, nephrology and orthopedic services. The company had 1992 sales of $1.46 billion.
 Medical Care America is the nation's largest owner and operator of outpatient surgical centers, with 93 centers in 26 states.
 -0- 1/17/94
 /CONTACT: Les Jacobson, 708-559-4695, or Steve Mazur, 708-559-4696, both of Caremark/
 (CK MRX)


CO: Caremark Internatinoal; Medical Care America, Inc.; Critical Care
 America ST: Illinois IN: HEA SU: TNM


MP -- NY020 -- 2395 01/17/94 08:55 EST
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Publication:PR Newswire
Date:Jan 17, 1994
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