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U.S. TAX COURT RULES IN FAVOR OF COLUMBIA ON APPROXIMATELY $614 MILLION TAX ISSUE

NASHVILLE, Tenn., March 8 /PRNewswire/ -- Columbia/HCA Healthcare Corporation (NYSE: COL) today announced that the United States Tax Court has issued a decision in Columbia's favor on a long-standing tax issue totaling approximately $614 million in taxes and related interest.

The Tax Court ruled that Hospital Corporation of America properly reported its taxable income using a hybrid method of accounting -- combining the cash and accrual methods -- and that the IRS abused its discretion in changing the hospitals to an overall accrual method. Hospital Corporation of America is a wholly-owned subsidiary of Columbia.

Columbia stated that the favorable Tax Court ruling would not have a material effect on the Company's earnings, but that it was extremely pleased to resolve this potential liability.

Certain other issues, which were also heard by the Tax Court in late 1994, remain outstanding, and a decision by the Tax Court on those issues is anticipated later this year. The remaining issues total approximately $446 million in income taxes and interest at December 31, 1995.
 -0- 3/8/96


/CONTACT: Investor: Victor L. Campbell, 615-320-2053, or Media: Lindy B. Richardson, 615-320-2166, both of Columbia/HCA Healthcare Corporation/

(COL)

CO: Columbia/HCA Healthcare Corporation ST: Tennessee IN: HEA SU:

CM -- CHF006 -- 1567 03/08/96 11:47 EST
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Publication:PR Newswire
Date:Mar 8, 1996
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