CORAL GABLES, Fla., May 20 /PRNewswire/ -- Ramsay Managed Care, Inc.
(Nasdaq: RMCR) today announced results for the third quarter ended March 31,
1997.  The Company reported a net loss from continuing operations and before
extraordinary items for the quarter of $(50,000) or $(0.01) per share compared
to a net loss from continuing operations and before extraordinary items of
$(252,000) or $(0.04) per share for the same quarter in the prior year.
Revenues from continuing operations for the third quarter were $6,256,000
compared to $5,754,000 for the comparative prior year period.
    For the nine months ended March 31, 1997, the Company recorded a net loss
from continuing operations and before extraordinary items of $(881,000) or
$(0.14) per share compared to a net loss from continuing operations and before
extraordinary items of $(1,726,000) or $(0.27) per share for the nine month
period of the prior year.  Revenues from continuing operations for the nine
months ended March 31, 1997 were $17,878,000 compared to $15,749,000 for the
same period of the prior year.
    Ramsay Managed Care, Inc. previously announced that on April 18, 1997 the
shareholders of the Company approved its merger into Ramsay Health Care, Inc.
(RHCI).  Closing of the merger will take place upon the earlier to occur of a
refinancing of RHCI's existing debt obligations or consent to the merger by
RHCI's current lenders.
    Ramsay Managed Care, Inc. operates a long established business in the
management of mental health services and substance abuse programs on behalf of
self insured employers, health maintenance organizations (HMOs) and
governmental agencies in various states.

                          Ramsay Managed Care, Inc.

                    Consolidated Statements of Operations
                                 (unaudited)

                            Nine Months Ended             Quarter Ended

                         March 31      March 31       March 31     March 31

                           1997         1996(a)         1997         1996(a)

    Revenues:
     Managed care
      revenue          $15,425,000   $14,309,000   $5,127,000    $5,194,000
     Clinical fee for
      service and other
      revenue            2,453,000     1,440,000    1,129,000       560,000
    Total revenues      17,878,000    15,749,000    6,256,000     5,754,000

    Operating expenses:
     Contracted provider
      services           6,497,000     5,561,000    2,188,000     2,039,000
     Salaries, wages and
      benefits           6,986,000     6,624,000    2,331,000     2,108,000
     Management fees
      charged by related
      companies            222,000       210,000       46,000        78,000
     General and
      administrative
      expenses           3,379,000     3,563,000    1,195,000     1,280,000
     Depreciation and
      amortization       1,000,000       948,000      305,000       319,000
    Interest and other
      financing charges    675,000       569,000      241,000       182,000
    Total operating
      expenses          18,759,000    17,475,000    6,306,000     6,006,000

    Loss from continuing
     operations before
     income taxes and
     extraordinary item  (881,000)   (1,726,000)     (50,000)     (252,000)
    Income tax (benefit)
      expense                  ---           ---          ---           ---
    Extraordinary item   (176,000)           ---    (176,000)           ---
    Loss from continuing
     operations after
     Extraordinary
     Item             $(1,057,000)  $(1,726,000)   $(226,000)    $(252,000)


    Loss per common
     share from continuing
     operations before
     Extraordinary Item    $(0.14)       $(0.27)      $(0.01)       $(0.04)
    Loss per common share
     from Extraordinary
     Item                   (0.03)          0.00       (0.03)          0.00

    Loss per common share
     after Extraordinary
     Item                  $(0.17)       $(0.27)      $(0.04)       $(0.04)

    Weighted average number
     of shares
      outstanding        6,400,921     6,384,934    6,408,315     6,375,550

    (a) Certain amounts for the quarter and nine months ended March 31, 1996
have been reclassified to reflect the Company's discontinued HMO operation.

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