CORAL GABLES, Fla., Sept. 17 /PRNewswire/ -- Ramsay Health Care, Inc.
(Nasdaq: RHCI) today reported that net income for the fiscal year ended June
30, 1997 totaled $3,278,000 against a net loss of ($16,481,000) in the prior
year. Total revenues for the fiscal year ended June 30, 1997 reached
$136,719,000, an increase of 16% over total revenues in fiscal year 1996 of
$117,423,000.  Earnings per share for fiscal 1997 were $0.31 compared to a
loss per share of ($2.12) in the prior year.
    Net income for the quarter ended June 30, 1997 totaled $615,000 compared
to a net loss of ($17,563,000) recorded in the same period a year ago.
Earnings per share for the quarter ended June 30, 1997 were $0.06 as compared
to a loss per share of ($2.23) in the fourth quarter of the prior
year.
    In comparing the quarter and year end results, the Company noted that the
results in the prior year periods were significantly impacted by non cash
asset write-downs and the establishment of reserves in the fourth quarter
ended June 30, 1996.
    Commenting on the fiscal 1997 results, Paul J. Ramsay, Chairman of the
Board of Ramsay Health Care, Inc. stated, "Our year end and fourth quarter
results reflect good performance by the Company and the merger with Ramsay
Managed Care, Inc.  We are very pleased with the combined Companies' future
opportunities and continue focusing our efforts on diversifying the Company's
product and revenue mix."
    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.

                             RAMSAY HEALTH CARE, INC.
                                 OPERATING RESULTS

                                          QUARTER ENDED JUNE 30

                              1997                       1996

                              $                 %         $              %



    NET REVENUES         38,311,000       100.0%   24,591,000        100.0%

    Operating Expenses:
    Salaries, wages and
     benefits           18,057,000         47.1%   17,452,000         70.9%
    Other operating
     expenses           14,206,000         37.1%   12,485,000         50.8%
    Provision for doubtful
     accounts            2,356,000          6.1%    2,561,000         10.4%
    Depreciation and
     amortization        1,504,000          3.9%    1,442,000          5.9%
    Interest and other
     financing charges   1,479,000          3.9%    1,629,000          6.6%
    Losses related to asset sales
     and closed businesses     ---           ---    4,473,000         18.2%
    Asset impairment charges   ---           ---    5,485,000         22.3%
     TOTAL OPERATING
      EXPENSES          37,602,000         98.1%     45,527,000      185.1%

    INCOME (LOSS) BEFORE MINORITY
     INTERESTS AND INCOME
      TAXES                709,000           1.9%   (20,936,000)     -85.1%
    Minority Interests         ---           ---      177,000          0.8%

    INCOME (LOSS) BEFORE INCOME
     TAXES                 709,000            1.9%  (21,113,000)     -85.9%
    Provision (benefit) for income
     taxes                  94,000            0.3%   (3,550,000)     -14.5%

    NET INCOME (LOSS)      615,000            1.6%  (17,563,000)     -71.4%

    Earnings Per Share:
     Primary                        $0.06                 ($2.23)
     Fully Diluted                  $0.06                 ($2.23)

    Weighted Average Shares Outstanding:
     Primary                   12,736,000               7,929,000
     Fully Diluted             12,736,000               7,929,000



                           RAMSAY HEALTH CARE, INC.
                              OPERATING RESULTS

                                     TWELVE MONTHS ENDED JUNE 30

                                1997                      1996

                               $               %         $               %



    NET REVENUES       136,719,000        100.0%   117,423,000       100.0%
    Operating Expenses:
    Salaries, wages and
     benefits           67,793,000         49.6%   66,259,000         56.4%
    Other operating
     expenses           46,819,000         34.2%   42,387,000         36.1%
    Provision for doubtful
     accounts            5,688,000          4.2%    5,805,000          4.9%
    Depreciation and
     amortization        5,473,000          4.0%    5,490,000          4.7%
    Interest and other
     financing charges   5,942,000          4.3%    6,892,000          5.9%
    Losses related to asset sales
     and closed businesses     ---           ---    4,473,000          3.8%
    Asset impairment charges   ---           ---    5,485,000          4.7%
     TOTAL OPERATING
      EXPENSES         131,715,000         96.3%   136,791,000       116.5%

    INCOME (LOSS) BEFORE
     INCOME TAXES        5,004,000          3.7%    (19,368,000)     -16.5%

    Provision (benefit) for
     income taxes        1,726,000          1.3%  (2,887,000)         -2.5%

    NET INCOME (LOSS)    3,278,000          2.4%   (16,481,000)      -14.0%

    Earnings Per Share:
    Primary                         $0.31                 ($2.12)
    Fully Diluted                   $0.31                 ($2.12)

    Weighted Average Shares Outstanding:
    Primary                    12,072,000               7,929,000
    Fully Diluted              12,072,000               7,929,000

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