CORAL GABLES, Fla., Aug. 19 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) today announced that its managed behavioral care division had
signed an agreement with Physicians Healthcare Plans ("PHP"), a 110,000 member
health maintenance organization based in Tampa, Florida.
    The agreement which becomes effective September 1, 1997, calls for FPM
Behavioral Health, the managed behavioral care division of Ramsay Health Care,
Inc. to provide and manage behavioral healthcare services for 65,000 of PHP's
eligible members.
    Commenting on the new contract, Bert Cibran, President of Ramsay Health
Care, Inc. stated, "We are very pleased to establish a relationship with PHP.
This new agreement is consistent with our overall strategy to expand our
public sector business and gives us an entrance into the Medicaid market in
the State of Florida."
    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 hospitals and manages behavioral healthcare programs on behalf
of acute care hospitals and community mental health centers throughout the
United States.

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