CORAL GABLES, Fla., Nov. 14 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) today announced results for the first quarter ended September
30, 1997.  Total revenues for the quarter reached $37,755,000, an increase of
20% over total revenues of $31,535,000 for the same period a year ago.
    Income before extraordinary loss for the quarter was $398,000, or $0.03
per share, versus net income of $148,000, or $0.01 per share, for the same
period of the prior year.  The amount for the current fiscal quarter excludes
an extraordinary loss of ($3,574,000), or ($0.34) per share, arising from the
early extinguishment of debt related to the Company's previously announced
$60 million refinancing.
    Commenting on first quarter performance, Paul J. Ramsay, Chairman of
Ramsay Health Care, Inc., noted, "Our results for the first quarter of fiscal
1998 reflect steady growth in all of our lines of business.  We are
particularly pleased that patient days in our youth services business
increased significantly compared to the same quarter last year.  We are very
satisfied with the Company's performance and look forward to management's
continuing achievement of our diversification and growth objectives."
    Ramsay Health Care, Inc. is a leading provider and manager of specialty
managed care and behavioral health services.  The Company through its youth
services division offers diversified programs for at-risk and troubled youth
in residential and non-residential settings nationwide.  In addition, the
Company's managed behavioral care division provides and manages the delivery
of behavioral healthcare services for employers, insurance companies, health
maintenance organizations and governmental agencies.  Ramsay Health Care, Inc.
also operates psychiatric facilities and manages behavioral healthcare
programs on behalf of acute care hospitals and community mental health centers
throughout the United States.

                           RAMSAY HEALTH CARE, INC.
                              OPERATING RESULTS

                                             QUARTER ENDED SEPTEMBER 30,
                                     1997                      1996
                                       $            %           $          %

    TOTAL REVENUES               37,755,000      100.0%   31,535,000   100.0%

    Operating Expenses:
     Salaries, wages and
      benefits                   19,347,000       51.3%   16,616,000    52.7%
     Managed care provider
      expenses                    2,387,000        6.3%          ---      ---
     Other operating
      expenses                   11,566,000       30.6%   11,024,000    34.9%
     Provision for doubtful
      accounts                    1,099,000        2.9%      889,000     2.8%
     Depreciation and
      amortization                1,638,000        4.3%    1,313,000     4.2%
     Interest and other
      financing charges           1,320,000        3.5%    1,545,000     4.9%
       TOTAL OPERATING
        EXPENSES                 37,357,000       98.9%   31,387,000    99.5%

    INCOME BEFORE INCOME TAXES
     AND EXTRAORDINARY ITEM         398,000        1.1%      148,000     0.5%
    Provision for income taxes          ---         ---          ---      ---

    INCOME BEFORE
     EXTRAORDINARY ITEM             398,000        1.1%      148,000     0.5%
    Extraordinary item, loss
     on early extinguishment
     of debt                    (3,574,000)       -9.5%          ---      ---

    NET INCOME (LOSS)           (3,176,000)       -8.4%      148,000     0.5%

    FULLY DILUTED EARNINGS
     PER SHARE:
      Income before
       extraordinary item             $0.03                    $0.01
      Extraordinary item             (0.34)                      ---

      Net income (loss)             ($0.31)                    $0.01

    Fully Diluted Weighted
     Average Shares
     Outstanding                 10,580,000                8,174,000

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