Pacer Health Announces Financial Turnaround on Track at Minnie G. Boswell Memorial Hospital

Aggressive Management Strategies Reverse $1.9 Million Annual Operating Loss

MIAMI & GREENSBORO, Ga.--(BUSINESS WIRE)--March 30, 2005--Pacer Health Corporation (OTCBB:PHLH - News), a Miami-based owner-oerator of acute care hospitals, medical treatment centers and residential care facilities, announced today that according to current, un-audited financial statements, Pacer Health is successfully engineering the financial restructure of Minnie G. Boswell Memorial Hospital, a rural healthcare facility that the company has managed and operated since solidifying an agreement to purchase it on June 22, 2004.

An accredited JCAHO (Joint Commission on Accreditation of Health Care Organizations) organization, Minnie G. Boswell is comprised of a 25-bed acute care hospital and 29-bed skilled nursing facility primarily serving the residents of Greensboro, Georgia. Pacer Health is currently finalizing the full acquisition of the hospital, pending review by the Attorney General of the State of Georgia.

According to reports published by the Athens Banner-Herald in June 2004, Minnie G. Boswell experienced a loss of nearly $800,000 in just the one-month period immediately preceding Pacer Health's management takeover and an average operating loss of $100,000 per month for the year ending July 31, 2004. Following the Pacer Health restructure, the facility experienced a net operating loss of only $64,941 for the seven-month period ending February 28, 2005, with a 17 percent increase in operating revenue.

"After years of mismanagement, financial struggle and threats of closure right up until the moment Pacer Health assumed its operation, Minnie G. Boswell is finally transitioning to a cash flow positive situation," said Rainier Gonzalez, chairman and CEO of Pacer Health. "Most importantly, we have maintained our commitment to the current staff, and have announced no layoffs since we began managing the hospital in June 2004. We are delighted to state that our restructure of Minnie G. Boswell is on course."

In addition to overseeing the day-to-day operation of the hospital, Pacer Health has introduced a series of strategies to reduce costs and enhance Minnie G. Boswell's operating efficiency. These include: offering onsite training and education for hospital staff; providing software selection assistance to establish an effective and efficient business office; and implementing billing and coding reviews.

"Both Pacer Health and the Greene County Hospital Authority realized that closing the hospital would have a very serious trickle-down effect on the local community, and that unless aggressive new management stepped in, the closure would be inevitable," added Gonzalez. "Our efforts have proven that the Pacer Health acquisition and turnaround model works in non-urban areas - and we believe it can be duplicated in similarly challenged medical facilities around the country."