Exhibit 99.1


FOR IMMEDIATE RELEASE:                            CONTACT: Deborah H. Frankovich
                                                       Senior Vice President and
                                                               Treasurer
                                                              281-774-5100

PARACELSUS HEALTHCARE CORPORATION COMMENTS ON OUTSTANDING INTEREST PAYMENT


         HOUSTON,  Texas, February 14, 2000 - Paracelsus Healthcare  Corporation
(NYSE:  PLS) today  announced  that the  scheduled  February  15, 2000  interest
payment of $16.25 million on its $325 million 10% Senior Subordinated Notes will
not be paid  tomorrow.  The  scheduled  interest  payment is subject to a 30-day
grace period that will expire on March 16, 2000.

         Additionally, Paracelsus has retained the firm of Chase Securities Inc.
as its financial advisor in connection with the exploration of alternatives with
respect to  Paracelsus'  capital  structure.  The  Company  intends to engage in
discussions with the holders of the $325 million Notes.

         Paracelsus Healthcare  Corporation,  a public company listed on the New
York Stock Exchange, was founded in 1981 and is headquartered in Houston, Texas.
Including  a hospital  partnership,  Paracelsus  presently  owns or  operates 10
hospitals  in  seven  states,  with a total of 1,287  beds.  Additional  Company
information  may  be  accessed  through   http://www.prnewswire.com   under  the
Company's name.

         Certain   statements  in  this  press   release  are   "forward-looking
statements"  made  pursuant  to  the  Safe  Harbor  provisions  of  the  Private
Securities Litigation Reform Act of 1995.  Forward-looking  statements involve a
number of risks and uncertainties.  Factors which may cause the Company's actual
results in future periods to differ  materially from forecast  results  include,
but  are  not  limited  to:  general  economic  and  business  conditions,  both
nationally and in the regions in which the Company operates;  industry capacity;
demographic  changes;  existing  government  regulations  and changes in, or the
failure  to  comply  with  government  regulations;  legislative  proposals  for
healthcare reform; the ability to enter into managed care provider  arrangements
on  acceptable  terms;  changes in Medicare and Medicaid  reimbursement  levels;
liabilities and other claims asserted against the Company; competition; the loss
of any  significant  customer;  changes in  business  strategy,  divestiture  or
development  plans;  the  ability to attract  and  retain  qualified  personnel,
including physicians; the continued listing of the Company's common stock on the
New York Stock Exchange;  the  availability  of capital at reasonable  terms and
conditions  to  fund  working  capital  requirements  and the  expansion  of the
Company's  business;  its continued  compliance with its existing debt covenants
and its ability to obtain waivers in the event of noncompliance;  the ability of
the  Company to  utilize  its tax  assets;  and the  ability  to  satisfactorily
restructure its balance sheet. Given these uncertainties,  prospective investors
are cautioned not to place undue  reliance on such  forward-looking  statements.
The Company is generally  not  required to, and does not  undertake to update or
revise its forward-looking statements.