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U.S. HEALTHCARE ISSUES THE FIRST QUALITY REPORT CARD BASED ON NATIONAL REPORTING STANDARD

 BLUE BELL, Pa., Nov. 16 /PRNewswire/ -- U.S. Healthcare Inc. (NASDAQ: USHC) today became the first managed care organization to publish a quality report card based on the Health Plan Employer Data and Information Set (HEDIS 2.0) recently released by the National Committee for Quality Assurance (NCQA).
 HEDIS is the only uniform national standard for evaluating and comparing the performance of HMOs and other health plans.
 The quality report card released by U.S. Healthcare is consistent with the President's proposed Health Security Act and other reform proposals that seek to increase competition and meaningful consumer choice through the availability of valid comparative information on the performance of health plans.
 Data collection and analysis were performed by U.S. Quality Algorithms (USQA), U.S. Healthcare's quality measurement subsidiary. Steven Zatz, M.D., president of USQA, said, "U.S. Healthcare has now made it possible for its performance to be evaluated and compared based upon consistent criteria. Use of the HEDIS 2.0 standard assures the consumer that information has been collected and reported in a valid manner. This standardized comparative data will provide consumers with the information that they need to make informed decisions."
 Today's release of plan performance information is but one aspect of U.S. Healthcare's accountability reporting system. For more than five years, the company has been developing physician and hospital specific performance reports. This information will be available to U.S. Healthcare members in the near future.
 The HEDIS 2.0 quality measures cover preventive care, prenatal care, chronic disease management, mental health care, access to care, and member satisfaction. The standards were the result of a collaborative effort of health plans, employers, and NCQA. USQA participated on the NCQA Performance Assessment Committee responsible for producing HEDIS 2.0.
 U.S. Healthcare's 1992 data for its Pennsylvania HMO -- which serves more than 600,000 members -- follows this release. Certain of the report card quality measures are discussed below.
 Mammographic screening in women over age 50 has been shown conclusively to reduce mortality from breast cancer. For several years, U.S. Healthcare has worked to improve mammography rates through its U.S. HealthcareCheck program, which includes risk assessments, automatic referrals to mammography centers, and work-site screenings. U.S. Healthcare-HMO-PA's 1992 performance for the HEDIS 2.0 Mammography Rate Measure was 74.2 percent. The U.S. Department of Health and Human Services, in the publication "Healthy People 2000: National Health Promotion and Disease Prevention Objectives," sets a goal for the year 2000 of at least 60 percent of women over age 50 to receive mammography within the preceding one to two years. U.S. Healthcare has already exceeded this ambitious goal.
 U.S. Healthcare-HMO-PA's 1992 results for the HEDIS 2.0 Childhood Immunization Rate measure, which assesses the degree to which 2-year- olds are fully immunized, exceeded 90 percent for three of the four individual immunization series. "Healthy People 2000" calls for basic


immunization series rates of 90 percent for 2-year-olds by the year 2000.
 U.S. Healthcare-HMO-PA's 1992 HEDIS 2.0 Cholesterol Screening Rate reached 79.9 percent, which exceeds the "Healthy People 2000" goal of screening 75 percent of adults for elevated cholesterol by the year 2000.
 The Company attributes its high pediatric immunization and cholesterol screening scores to the success of U.S. Healthcare's Quality Care Compensation System (QCCS), which rewards primary care physicians with added compensation for delivering high quality care. Immunization and cholesterol screening rates are among the QCCS criteria.
 Another section of the quality report card focuses on the management of patients with chronic conditions such as asthma. The Asthma Admission Rate measure is intended to assess outpatient care for asthmatics resulting in lower rates of hospitalization. U.S. Healthcare-HMO-PA's 1992 performance shows that only 1.48 members per thousand were hospitalized for asthma. This compares favorably with the "Healthy People 2000" goal for the year 2000 of reducing hospitalizations to 1.60 per thousand per year. U.S. Healthcare recently instituted a special program to assist with the management of asthma and the program is expected to result in further reductions in the asthma admission rate.
 The quality report card also includes the results of U.S. Healthcare-HMO-PA's 1992 member satisfaction survey. The responses to the survey question concerning members' ratings of the overall medical care provided by their primary doctor showed that 93.3 percent of members rated their overall medical care as good or better.
 U.S. Healthcare provides managed health care services through its HMOs in Pennsylvania, New Jersey, New York, Delaware, Connecticut, Massachusetts, New Hampshire and Maryland. The company also provides a variety of other managed health care services, including workers' compensation managed care, to self-insured and other employers. In addition, the company offers quality assessment and improvement programs, patient surveys and outcome tracking, and data analysis systems for providers and purchasers of health care.
 U.S Healthcare 1992 Quality Report Card
 National Committee for Quality Assurance
 Health Plan Employer Data and Information Set (HEDIS) 2.0
 QUALITY OF CARE MEASURE U.S. Healthcare
 HMO-PA
 -- PREVENTIVE SERVICES
 1. Childhood Immunization 76.7
 A. Mumps-Measles-Rubella (MMR) 91.0
 B. Diptheria-Pertussis-Tetanus (DPT) 90.5
 C. Oral Polio Vaccine (OPV) 92.1
 D. Hemophilus Influenza (Hib) 84.0
 2. Cholestrol Screening 79.9
 3. Mammography Screening 74.2
 4. Cervical Cancer Screening 71.0
 -- PRENATAL CARE
 5. Low Birthweight
 A. Less than 1500 gm 1.0
 B. Less than 2500 gm 6.3
 6. Prenatal Care in First Trimester 84.5
 -- CHRONIC ILLNESS
 7. Asthma Inpatient Admission Rate 0.148
 8. Diabetic Retinal Exam 32.9
 -- MENTAL HEALTH
 9. Ambulatory Follow-up after Hospitalization 74.0
 -- MEMBER ACCESS AND SATISFACTION
 10. Access
 A. Aged 23-39 93.7
 B. Aged 40-64 94.8
 11. Satisfaction 93.3
 NOTE: All statistics are expressed as percentages.
 /delval/
 -0- 11/16/93
 /CONTACT: Steven L. Zatz, M.D., president, U.S. Quality Algorithms, 215-283-6495/
 (USHC)


CO: U.S. Healthcare, Inc. ST: Pennsylvania IN: HEA SU:

JM-JR -- PH002 -- 4889 11/16/93 08:33 EST
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