EXHIBIT 11.1 PARACELSUS HEALTHCARE CORPORATION COMPUTATION OF EARNINGS (LOSS) PER SHARE (In thousands, except per share data) Three Months Ended March 31, ----------------------- 1997 1996 ---------- -------- PRIMARY: (1) Net income (loss) $ 5,168 $(14,349) ===== ====== Shares used in this computation: Weighted average common shares outstanding 54,813 29,772 Shares applicable to stock options and warrants, net of shares assumed to be purchased from proceeds at average market price 2,855 - ----- ------ (2) Total shares for net income (loss) per share computation 57,668 29,772 ====== ====== Income (loss) per share: Continuing operations $ 0.09 $ (0.10) Discontinued operations - (0.38) ----- ------ Net income (loss) per share (1 divided by 2) $ 0.09 $ (0.48) ==== ==== FULLY DILUTED: (3) Net income (loss) (1) $ 5,168 $(14,349) ===== ====== Shares used in this computation: Total primary shares (2) 57,668 29,772 Shares applicable to stock options and warrants in addition to those used in primary computation, using period-end market price when higher than average - - ----- ----- (4) Total fully diluted shares 57,668 29,772 Income (loss) per share: Continuing operations $ 0.09 $ (0.10) Discontinued operations - (0.38) ----- ---- Net income (loss) per share (3 divided by 4) $ 0.09 $ (0.48) ===== ====