Emcare Holdings Inc. Acquires Emergency Physician Practice Management Companies In Chicago And Houston

Business Wire, April 24, 1996

DALLAS--(BUSINESS WIRE)--April 24, 1996--EmCare Holdings Inc. (Nasdaq:EMCR) announced today a definitive agreement to acquire Medical Emergency Service Associates (MESA), S.C. of Rolling Meadows, Illinois. The transaction is expected to close on April 30, 1996. Terms of the transaction were not disclosed.

MESA provides emergency physician practice management services to eight high volume emergency departments, and two Occupational Medicine clinics in the Chicago and western Illinois markets. MESA generated net revenues of $13.4 million and 210,000 patient visits for the fiscal year ended September 30, 1995.

"The acquisition of MESA positions EmCare in a new urban market and continues our expansion and consolidation of emergency physician practice management groups," said William F. Miller, EmCare's President. He also noted that Stanley Zydlo, Jr., M.D., FACEP will continue as Director of MESA. Dr. Zydlo stated, "MESA is pleased to be part of the EmCare group and we believe the addition of EmCare's services and reputation will allow the group to expand in the Midwest markets."

In addition, on April 1, EmCare completed the acquisition of Suburban Houston Emergency Physicians Associates (SHEPA), in Houston, Texas, which manages the contract for Memorial City Hospital. SHEPA generated net revenues of $2.0 million and 23,000 patient visits for the year ended December 31, 1995. This facility is an affiliate of the Memorial Healthcare System currently under contract with EmCare. The addition of the Memorial City contract positions the Company as the primary provider of emergency physician practice management services to the Memorial Healthcare System and others, totalling six contracts with 174,000 visits, in the Houston area. Both of these acquisitions demonstrate the Company's continuing focus on achieving concentrated physician practice management services in market clusters. EmCare anticipates both transactions will be accretive to earnings per share in 1996.

Statements contained in this news release that are not based on historical facts are forward looking statements, subject to uncertainties and risks, including, but not limited to, the constantly changing health care environment, the pace of new business and acquisition activity, the reimbursement rates for health care services, the developments in the Department of Justice civil lawsuit against the Company and other defendants alleging violations of the False Claims Act, the implementation of new guidelines by the Health Care Financing Administration for the documentation of Medicare and Medicaid claims, the transition of the Company's billing activities from outside vendors to a recently acquired subsidiary, and the other risks detailed in the Company's Securities and Exchange Commission filings.

EmCare Holdings Inc. is a leading provider of physician services management in hospital emergency departments and other practice settings. EmCare provides the attendant practice management services to its physician contractors and arranges contracts and schedules for their services. EmCare has managed emergency physicians for more than 20 years primarily in larger hospitals with high volume emergency departments. As of March 31, 1996, EmCare had management contracts relating to 75 emergency departments in 17 states with approximately 2.0 million patient visits per year.

CONTACT: Robert F. Anderson, II

Chief Financial Officer

EmCare Holdings Inc.

(214) 712-2000

or

Robert P. Jones/Jennifer Cullis

Michelle Zawrotny: Media Contact

Morgen-Walke Associates

(212) 850-5600