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U.S. HEALTHCARE INTRODUCES QUALITY-BASED HOSPITAL PAYMENTS TO PITTSBURGH MARKET

 BLUE BELL, Pa., June 8 /PRNewswire/ -- U.S. Healthcare (NYSE: USHC) plans to introduce a payment methodology in the Pittsburgh market which rewards participating hospitals for delivering quality medical care and service.
 "This payment methodology, called `CapTainer'(TM), marks a new phase in the relationship between U.S. Healthcare and its participating hospitals," said Laurie Brubaker, vice president of operations for U.S. Healthcare's Pittsburgh office. The methodology is based upon a joint effort of the HMO and the hospitals, dedicated to improving patient care by utilizing the quality criteria and measurements which U.S. Healthcare has developed over many years.
 "U.S. Healthcare, in conjunction with its U.S. Quality Algorithms (USQA) subsidiary, has developed this innovative payment approach as part of its ongoing efforts to enhance the quality of care available to U.S. Healthcare members and to reward participating providers for achieving mutual patient care and service objectives," said Brubaker.
 CapTainer quality criteria include: member satisfaction, quality of care improvement goals and managed care philosophy. CapTainer, through sophisticated measuring systems, also takes into account such factors as severity of illness, intensity of service and integrity of information. Specific quality objectives of participating hospitals will also be incorporated into the CapTainer methodology.
 The specific method and amount of CapTainer payments may differ from hospital to hospital. The common elements are a "retainer-like" payment to the hospital for the care of all members who are expected to regularly use the hospital. In addition, a payment is made which augments the "retainer" based on the attainment of the quality criteria and the actual use of the hospital's services.
 "CapTainer is a natural extension of quality improvement programs formulated by individual hospitals, and was developed in consultation with hospital executives," continued Brubaker. "The payment program was started in Southeastern Pennsylvania and New Jersey in 1992. It complements and builds upon U.S. Healthcare's pioneering Quality Care Compensation System, introduced in 1987, which rewards physicians for delivering high-quality care."
 U.S. Healthcare provides comprehensive managed health care services to more than 1.5 million members through health maintenance organizations in Pennsylvania, New Jersey, New York, New Hampshire, Massachusetts, Delaware, Connecticut and Maryland. In addition, the company offers managed workers compensation services through Workers Comp Advantage, third party administration services through Corporate Health Administrators, and quality assessment, patient surveys, outcome tracking, and data analysis systems through U.S. Quality Algorithms.
 -0- 6/8/93
 /CONTACT: Jill Griffiths, 215-790-4163, or Jana Joustra, 215-790-4223, both of Foote, Cone & Belding, for U.S. Healthcare/
 (USHC)


CO: U.S. Healthcare ST: Pennsylvania IN: INS HEA SU: PDT

MJ-CC -- PH037 -- 6759 06/08/93 17:45 EDT
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Date:Jun 8, 1993
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