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PROVIDENCE HEALTH CARE TO PURSUE BUSINESS STRATEGY OF EXPANDING HEALTH CARE OPERATIONS

 BEREA, Ohio, Oct. 1 /PRNewswire/ -- Providence Health Care, Inc. (NASDAQ: PHCI), announced today that it has mailed a letter to all shareholders strongly recommending that they reject the Commonwealth Associates consent proposals to replace the current board of directors.
 The letter asks shareholders to execute the company's blue revocation card and support management's and the board's efforts to enhance the profitability of the company's existing nursing home care business and expand through acquisitions of additional nursing care facilities and in home health care. The letter also reviewed the achievements of the company in the 18 months since it when public, the recent acquisition of 40 percent of NuMED Home Health Care, Inc. (OTC: NUHH), and the status of the attempt by commonwealth and its head, Michael Falk, to take control of Providence.
 Lawrence Cummings, chairman and chief executive officer of Providence, separately announced: "I am pleased to announce that we have executed a letter of intent to acquire an institutional pharmacy and medical supply company and its affiliated nursing home management company in Florida. The institutional pharmacy company serves 3,000 nursing care and senior living beds and the management company manages six nursing care facilities with 780 beds."
 The company added that this letter of intent is non-binding and is subject to the execution of definitive agreements being signed by all parties. The total purchase price for the transaction is anticipated to be $4.35 million in cash.
 Copies of the shareholder letter, the company's consent revocation statement and the blue revocation card are being mailed to all Providence shareholders.
 Providence Health Care, Inc., was formed in February 1989 and acquired Northwestern Service Corporation, a nursing home operator, in June 1989. The company operates 15 long-term care facilities, 13 in Ohio and one each in Vermont and Virginia, with an aggregate 1,245 beds. Of these, 1,184 are nursing care beds and 61 are assisted-living beds. In addition, the company manages a 175-bed facility in Cleveland. Through Northwestern, which was merged into providence in December 1992, the company has been engaged in the nursing home business since 1970 and since 1983 has grown significantly through selected acquisitions and internal development. All of the company's Ohio facilities are located within approximately 150 miles of the company's headquarters in Berea, a Cleveland suburb.
 -0- 10/1/93
 /CONTACT: Daniel H. Burch or Stanley J. Kay of MacKenzie Partners, Inc., 212-929-5940/
 (PHCI NUHH)


CO: Providence Health Care, Inc.; Commonwealth Associates; NuMED Home
 Health Care, Inc. ST: Ohio, Florida IN: HEA SU: TNM


TW -- NY086 -- 7943 10/01/93 16:33 EDT
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Publication:PR Newswire
Date:Oct 1, 1993
Words:430
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