NEW ORLEANS, Sept. 12 /PRNewswire/ -- Ramsay Managed Care, Inc.
(Nasdaq: RMCR) today announced operating results for its fiscal year and
fourth quarter ended June 30, 1996.  These results were significantly impacted
by noncash asset write-downs and the establishment of reserves in the fourth
quarter ended June 30, 1996, as previously announced on August 30, 1996.
    The Company reported a net loss of $13,494,000 ($2.12 per share) for the
fiscal year ended June 30, 1996 compared to a net loss of $1,571,000 ($0.41
per share) for the prior fiscal year.  The fourth quarter ended June 30, 1996
reflected a net loss of $11,591,000 ($1.81 per share) compared to a net loss
of $1,481,000 ($0.31 per share) for the comparable prior year quarter.
    The results for the year include a one-time noncash pretax charge against
earnings of $2.7 million for write-offs in the fourth quarter and in addition
the establishment of a $4.9 million reserve with respect to the Company's
investment in its HMO operations.
    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 and governmental
agencies in various states and also operates a health maintenance organization
(HMO) in Louisiana, Mississippi and Alabama.  The Company continues to pursue
the sale of its HMO division.

                          Ramsay Managed Care, Inc.
                              Operating Results

                                         Year Ended June 30,
                                   1996                        1995

                            $               %           $               %

    NET REVENUES        21,602,000        100.0%   16,145,000        100.0%

    Operating expenses:
     Contracted provider
      services           8,088,000         37.4%    5,149,000         31.9%
     Salaries, wages and
      benefits           8,743,000         40.5%    6,882,000         42.6%
     Management fees
      charged by related
      companies            406,000          1.9%      284,000          1.8%
     General and
      administrative
      expenses           5,846,000         27.1%    3,215,000         19.9%
     Depreciation and
      amortization       1,323,000          6.1%    1,244,000          7.7%
     Interest and other
      financing charges    685,000          3.2%      334,000          2.1%
     Write-down of
      goodwill           1,929,000          8.9%            0          0.0%
     Listing and stock
      distribution expenses      0          0.0%      724,000          4.5%

    Total operating
      expenses          27,020,000        125.1%   17,832,000        110.4%

    Loss from continuing
     operations        (5,418,000)        -25.1%  (1,687,000)        -10.4%

    Income tax (benefit)
     expense                     0          0.0%    (192,000)         -1.2%

    Loss from continuing
     operations        (5,418,000)        -25.1%  (1,495,000)         -9.3%

    Discontinued
      operations:
     Loss from
      discontinued
      operations       (3,149,000)        -14.8%     (76,000)         -0.5%

    Loss on disposal
     of discontinued
     operations        (4,927,000)        -22.8%            0          0.0%

    Net loss          (13,494,000)        -62.5%  (1,571,000)         -9.7%

    Primary earnings
     per share
     From continuing
      operations           ($0.85)                    ($0.39)
     From discontinued
      operations           ($1.27)                    ($0.02)

    Total primary
     earnings per share    ($2.12)                    ($0.41)

    Weighted average
     shares outstanding  5,378,400                  3,789,000


                          Ramsay Managed Care, Inc.
                              Operating Results

                                        Quarter Ended June 30,
                                   1996                        1995

                            $               %           $               %


    NET REVENUES         5,853,000        100.0%    4,800,000        100.0%


    Operating expenses:
     Contracted provider
       services          2,526,000         43.2%    1,799,000         37.5%

     Salaries, wages and
      benefits           2,119,000         36.2%    1,996,000         41.6%
     Management fees
      charged by related
      companies            196,000          3.3%       61,000          1.1%
     General and
      administrative
      expenses           2,295,000         39.2%    1,258,000         26.2%
     Depreciation and
      amortization         375,000          6.4%      484,000          9.7%
     Interest and other
      financing charges    176,000          3.0%      164,000          3.4%
     Write-down of
      goodwill           1,929,000         33.0%            0          0.0%
     Listing and stock
      distribution expenses      0          0.0%      724,000         15.1%

    Total operating
     expenses            9,616,000        164.3%    6,456,000        134.5%

    Loss from continuing
     operations        (3,763,000)        -64.3%  (1,656,000)        -34.5%

    Income tax
     expense (benefit)   1,092,000         18.7%    (251,000)         -5.2%

    Loss from continuing
     operations        (4,855,000)        -82.9%  (1,405,000)        -29.3%

    Discontinued
    operations:
     Loss from
      discontinued
      operations       (1,809,000)        -30.9%     (76,000)         -1.6%

    Loss on disposal
     of discontinued
     operations        (4,927,000)        -84.2%            0          0.0%

    Net loss          (11,591,000)       -198.0%  (1,481,000)        -30.9%

    Primary earnings
     per share
     From continuing
       operations          ($0.76)                    ($0.29)
     From discontinued
       operations          ($1.05)                    ($0.02)

    Total primary
     earnings per share    ($1.81)                    ($0.31)

    Weighted average
     shares outstanding  6,387,020                  4,804,400

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