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PREMIER ANESTHESIA DOWNSIZES NATIONAL PAIN INSTITUTE; WILL TAKE A $12 MILLION PRETAX RESTRUCTURING CHARGE; FOUNDER APPOINTED CEO

 ATLANTA, Nov. 15 /PRNewswire/ -- Premier Anesthesia, Inc. (NASDAQ: PRAN), the nation's leading provider of contract anesthesia services, today announced that it would substantially downsize the California operations of National Pain Institute, Inc. (NPI), its majority-owned pain management subsidiary.
 NPI has pain treatment centers in Los Angeles, Dallas and Atlanta. This downsizing and other restructuring activities related to increasing the profitability of the company's contract anesthesia operations will require up to a $12 million pretax charge to the fourth quarter's operating results.
 In a special meeting of the company's and NPI's boards of directors on Nov. 12, the boards determined that NPI could no longer afford to offer pain management services to the slow-paying California litigated workers' compensation system, which comprises about 80 percent of NPI's and 20 percent of Premier's consolidated revenue. The decision to downsize NPI at this time was caused not only by the California litigated workers' compensation system insurance carriers' withholding payment for medical claims, but also by the failure of a financing source to honor a commitment to purchase or finance NPI's receivables. The company is currently pursuing available legal remedies in both situations.
 NPI will continue its pain management services to existing patients in the California litigated workers' compensation system over the next several months as each patient's treatment program is completed, but, effective immediately, no new patients in this payer category will be accepted.
 The board also announced that the company's founder and Chairman of the Board Richard L. Jackson would assume the additional responsibility of chief executive officer. Richard D. Ballard will continue as the company's president. Jackson and management will examine the operations of the entire company and restructure them, as appropriate, to help ensure profitable and positive cash flow operations in 1994 and beyond.
 -0- 11/15/93
 /CONTACT: Joseph G. Bleser, executive vice president & CFO, Premier Anesthesia, 404-390-3744/
 (PRAN)


CO: Premier Anesthesia, Inc.; National Pain Institute, Inc. ST: Georgia IN: MTC SU: PER RCN

BR-BN -- AT016 -- 4679 11/15/93 16:56 EST
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Publication:PR Newswire
Date:Nov 15, 1993
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