Healthcare Recoveries, Inc.
Ticker:HCRI 1400 Watterson Tower
Exchange:NASDAQ-National Market Louisville, KY 40218
Industry:High-Tech (SIC Code 7372) (502) 454-1340

Offering Information
Type of Shares:Common Shares Filing Date:3/14/97
U.S. Shares:7,840,000 Offer Date:5/21/97
Non-U.S. Shares:1,960,000 Filing Range:$13.00 - $15.00
Primary Shares:0 Offer Price:$14.00
Secondary Shares:9,800,000 Gross Spread:$0.91
Offering Amount: $137,200,000 Selling:$0.54
Expenses: - Reallowance:$0.10
Shares Out After: -
Spin out parent firm: Medaphis Corporation

Primary Underwriting Group
ManagerTierPhone
Bear, Stearns & Co. Inc.Lead Manager (212) 272-4850
Donaldson, Lufkin & Jenrette Securities Corp.Co-manager (212) 371-0641
Robinson-Humphrey Company, Inc., TheCo-manager (404) 266-6450

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: King & Spalding
Bank's Law Firm: Simpson, Thacher & Bartlett
Auditor: Coopers & Lybrand

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/96 12/31/96
Revenue:$31.42Assets:$23.97
Net Income:$5.10Curr Assets:
EPS:Liabilities:$19.86
Prior EPS:Curr Liabilities:
Cash Flow/Oper:$5.88Equity:$4.11
Cash Flow/Fin:Cash:
Cash Flow/Inv:

Business Description
The company provides services designed to recover the value of accident related healthcare benefits provided by its clients to people who are insured, when a third party is responsible for those health benefits. The cmpany offers its services on a nationwide basis to health maintenance organizations, indemnity health insurers, self-funded employee health plans, companies that provide claims administration services to self-funded plans, Blue Cross and Blue Shield organizations and provider organized health plans. Current clients include United Healthcare, Blue Shield of California, Healthsource, Humana, Kaiser Permanente, Oxford Health Plans, Sears and The Prudential. The company had 31.1 million lives under contract from its clientele at January 31, 1997, more than double the 14.5 million lives under contract at December 31, 1994. The rising costs of healthcare and price competition have contributed to industry consolidation and an increasing trend towards outsourcing for non-core functions, including subrogation.

Use of Proceeds
The proceeds from the proposed offering will be distributed to selling shareholder.

©1997 IPO Data Systems, Inc. - All rights reserved.