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INSTITUTE FOR HEALTHCARE QUALITY TO LICENSE PRACTICE GUIDELINES FOR ARIZONA REGION OF FHP, NATION'S LARGEST MEDICARE HMO

 New Software Package Will Help Guide Medical Decision Making
 MINNEAPOLIS, Jan. 17 /PRNewswire/ -- The Institute for Healthcare Quality(sm), a subsidiary of Health Risk Management, Inc. (NASDAQ: HRMI) (HRM(R)), a Minneapolis-based health care management information and services firm, announced the licensing of its QualityFIRST(R) health care practice guidelines to FHP Health Care's Arizona Region. FHP (NASDAQ: FHPC) is the largest Medicare HMO in the United States. When broken out from the company as a whole, FHP's Arizona Region is the nation's fourth largest Medicare HMO.
 QualityFIRST is a PC-based software system that helps guide physicians to optimal care decisions for improving outcomes. It presents treatment and resource options to consider as well as indicators for confirmation of diagnoses. The Institute license subscriptions to this software, which manages outcomes.
 James Krominga, M.D., senior medical director for FHP in Arizona, noted that QualityFIRST will be their first exposure to a computerized database of health care practice guidelines: "We had been looking for guidelines that were developed by physicians and that are maintained and updated based on the medical literature and on the experience of physicians in a clinical environment. We will use QualityFIRST in our prior-authorizations system for hospital admissions and medical procedures. Because guidelines will allow us to objectively evaluate appropriateness of care, we plan to use physician compliance to the guidelines as an element in our network physician education and profiling program.
 "We feel," Krominga continued, "that QualityFIRST's computerized format will lead to better consistency in medical practice throughout our network, as well as time savings and reduced paperwork for our physicians. This will result in better service and improved quality for our Arizona members."
 FHP will initially apply the guidelines to 40,000 members in Phoenix, followed by expansion throughout the Phoenix metropolitan area and Tucson, Ariz., to all Arizona members. In Arizona, FHP now serves 163,000 Medicare and non-Medicare covered individuals.
 Marlene Travis, CEO of the Institute and president of HRM, noted that "The QualityFIRST guidelines software is a powerful tool that HMO's, such as FHP, hospitals, physician-hospital organizations, insurance companies and others are finding especially valuable in this environment of reform. QualityFIRST guidelines optimize health care quality, reduce inappropriate services, facilitate consistency in medical decision-making across geographic lines and enable better overall management of financial and health-related risks. In addition to physician profiling capabilities, these electronic guidelines measure and document outcome-based improvements in care and provide a feedback/CQI mechanism for incorporating outcome findings that will enhance patient care."
 QualityFIRST guidelines are developed and refined using scientific methodology. The Institute's guideline development team determines optimal treatment standards by assessing international literature, academic and medical specialty society findings and international clinical databases. The information is synthesized into a guideline that is evaluated by panels of sub-specialty physicians with clinical experience, practicing primary care physicians and related health care professionals. HRM has used this guideline database in both the United States and Canada for nine years to help manage the health care needs of its clients' patients. QualityFIRST guidelines are continually improved to incorporate the latest medical research findings, feedback from physicians who use the guidelines and changes in medical practice.
 FHP Health Care, headquartered in Fountain Valley, Calif., was founded in 1961. It serves 862,000 members in Arizona, California, Colorado, Nevada, New Mexico, Texas, Utah and Guam. FHP recently announced plans to acquire TakeCare, Inc., headquartered in Concord, Calif. TakeCare's 755,000 members are located in California, Colorado, Illinois, and Ohio. Upon approval by both companies' stockholders, the combined company will become the fifth largest HMO in the nation.
 The Institute for Healthcare Quality, a research and development subsidiary of HRM, uses international expertise, databases, information management and leading-edge technology to help physicians, hospitals, self-insured companies and insurance companies improve the quality and value of health care. HRM, Inc. provides a broad range of integrated managed health care and claims services to self-insured employers, HMOs, preferred provider organizations, hospitals, insurance companies and governmental organizations in the United States and Canada.
 -0- 01/17/94
 /CONTACT: Nancy Hurd, 612-829-3749; or George Ryan, 612-829-3551, both of Health Risk Management/
 (HRMI FHPC)


CO: Health Risk Management, Inc.; FHP Health Care ST: Minnesota, Arizona IN: HEA SU:

CP-DB -- MN010 -- 1354 01/17/94 13:15 EST
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Date:Jan 17, 1994
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