Physician Healthcare Plan of New Jersey receives HMO license approval from the state.

LAWRENCEVILLE and TRENTON, N.J.--(BW HealthWire)--Sept. 21, 1995--Physician Healthcare Plan of New Jersey Inc. (PHPNJ), owned and directed by over 3,500 New Jersey physicians, announced today it has received its license to operate a health maintenance organization in five counties of New Jersey.

The company is pursuing statewide expansion of its licensing immediately.

The five counties are Bergen, Essex, Hudson, Passaic and Union. With the initial 5-county network licensed, PHPNJ has filed an amendment to the Health and Insurance Departments, seeking approval in New Jersey's remaining 16 counties.

"Today we are one step closer to completing our plan of a better health care delivery system for the state of New Jersey," said Henry D. Rosin, M.D., president and chairman of the board of Physician Healthcare Plan of New Jersey. "PHPNJ will offer the people of New Jersey an alternative to existing managed care plans, a healthcare plan that is owned and operated by local physicians whose first priority is obtaining and providing quality medical care for patients."

"This licensing will allow us to begin conducting business quickly and put the experience we gain to good use while awaiting statewide approval," added Dr. Rosin.

PHPNJ's goals are to provide its patients with the highest standards of quality care, remove restrictions on access to care and maintain affordable health insurance premiums. It is committed to preserving the patient/doctor relationship and promoting a healthy membership through education, preventative medicine, and enhancement of the scope and quality of care.

PHPNJ began as a grassroots movement of New Jersey physicians frustrated with the way insurance companies ran managed care plans. They believed these types of plans eroded the traditional doctor/ patient relationship and compromised patient care by limiting access to medical care as a way to control costs and increase income.

The company became incorporated in January 1994. In March 1994, a prospectus was sent to all physicians residing and practicing in New Jersey inviting them to purchase one share of stock in the plan at a cost of $5000. As a result of the initial offering, over 3,500 physicians capitalized the plan with $17.5 million. A second prospectus is awaiting approval by the SEC.

Physician Healthcare Plan of New Jersey is the state's first healthcare plan owned and directed by physicians. PHPNJ currently has over 45 full-time employees to manage day-to-day operations.

If you would like to receive a press kit on PHPNJ, please contact Lori Phillips at 609/896-1233 ext. 1152.

CONTACT: Physician Healthcare Plan of New Jersey, Inc.

Lori K. Phillips, 609/896-1233 ext. 1152