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Phyhealth Provides Update to Shareholders
Date:1/30/2009

MIAMI, Jan. 30 /PRNewswire-FirstCall/ -- Physicians Healthcare Management Group, Inc. (Phyhealth) (Pink Sheets: PHYH), a developer of health maintenance organizations (HMOs) in partnership with physicians and manager of Physhield Insurance Exchange, a licensed medical malpractice insurer, today released the following letter to its shareholders:

Dear Phyhealth Shareholder:

We have welcomed a new year, a new Congress and a new administration in Washington. Healthcare reform is high on President Obama's agenda, and as with any new administration, insurers and health plans must be prepared for change. We strongly believe our unique community health plan model offers a superior solution for the delivery and financing of the highest quality, most affordable healthcare for communities across the nation. We are confident that our model can adapt to the widest range of regulatory scenarios. Responsibility and accountability of physicians and their patients forms the core of the Phyhealth Plan model.

For now, healthcare reform is overshadowed by the turmoil in the financial markets and the deepening recession. But, the legislative, regulatory and economic environments have come together in such a way that major changes to the healthcare system are more likely now than at any time since the introduction of Medicare in 1965. This environment presents a rare combination of opportunities and constraints for the Company.

Specifically, the intense focus on healthcare reform coupled with the financial problems in the industry has created a highly conservative regulatory and compliance climate within the insurance industry that has become more difficult and costly to navigate. Plus, with the federal and state governments and all the component actors in the healthcare system offering varied solutions, we believe that a watchful posture is warranted for the next few months as the parameters of heal
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SOURCE Physicians Healthcare Management Group, Inc.
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