1

                                                                      Exhibit 99


Contact:     Tarpley B. Jones
             Executive Vice President and Chief Financial Officer
                or
             Howard D. Jewell
             Vice President Marketing and Communications
             (615) 665-9066

                       PHYCOR ANNOUNCES SALE OF CAREWISE

Nashville, Tennessee (May 29, 2001) -- PhyCor, Inc. (OTCBB:PHYC) today announced
the sale of CareWise, Inc., its healthcare demand management subsidiary, to
Louisville, Kentucky-based SHPS, Inc., a leading healthcare management, HR and
benefits administration company.

According to Tom Dent, president and chief executive officer of PhyCor, "We have
completed the sale of all assets other than those in our core businesses. We can
now focus our management expertise and financial resources on our IPA
operations, PhySys management services and related initiatives. With the sale of
CareWise, our bank debt and related bank obligations have been completely repaid
or otherwise satisfied."

PhyCor operates and manages Independent Practice Associations (IPAs) in
California through its PrimeCare and North American Medical Management
subsidiaries. It also manages IPAs in Chicago, Illinois; Kansas City, Missouri;
San Antonio, Texas; and Nashville, Tennessee. PhyCor's PhySys Division provides
management services to physician networks.

This press release may contain forward-looking statements based on management's
expectations and as such they may involve risks and uncertainties that could
cause actual results to differ materially from these expectations. PhyCor is in
default on the payment of certain obligations, including the interest on its
Convertible Subordinated Notes and is in discussion with a committee that
represents the holders of these notes. The failure to reach a satisfactory
agreement with these holders and other bondholders and creditors could have a
material adverse effect on the Company.



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