EXHIBIT 99.1




Contact:  Tarpley B. Jones
          President & Chief Executive Officer
          (615) 665-7474



              PHYCOR ANNOUNCES CONFIRMATION OF REORGANIZATION PLAN

Nashville, TN (July 25, 2002) - PhyCor announced today that its creditors have
overwhelmingly approved its bankruptcy reorganization plan and that the plan has
been confirmed by the United States Bankruptcy Court for the Southern District
of New York. PhyCor expects the plan to be consummated on or about July 31,
2002. When the plan is consummated, PhyCor will change its name to Aveta Health,
Inc. PhyCor filed for Chapter 11 bankruptcy relief on January 31, 2002.

         Under the terms of the reorganization plan, PhyCor's creditors,
including holders of its 4.5% convertible subordinated debentures, will receive
5.7 million shares of Aveta Health, Inc. common stock, except that holders of
allowed claims against PhyCor below $50,000 will receive a cash payment of 12.2%
of their claim. PhyCor's common stockholders will not participate in the plan
and their common stock will be canceled. The Company anticipates that the newly
issued stock of Aveta Health, Inc. will not be publicly traded.

         Commenting on the reorganization, President and Chief Executive Officer
Tarpley B. Jones, said, "Bankruptcy is a difficult process because a company
must confront those institutions and individuals who lost substantial sums of
money while it tries to maintain its customer base. I am pleased, however, that
PhyCor was in bankruptcy for only six months and that our operating units
performed well during this time. That is a testament to the months of hard work
that went into formulating the bankruptcy plan. Aveta Health will emerge from
bankruptcy with a good business plan and solid opportunities for growth."

         Aveta will have an entirely new Board of Directors, consisting of Mr.
Jones, as Chairman, and Paul Giordano, Scott Creedon, Gary Glatter and Joseph
Mark.

         Acting as counsel to the Company during the bankruptcy process were the
New York Office of Skadden, Arps, Slate, Meagher & Flom LLP and Waller Lansden
Dortch Davis PLLC of Nashville. The Company's financial advisor was Jefferies &
Company, Inc.



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PhyCor Announces Confirmation
   of Reorganization Plan
July 25, 2002
Page 2


         Aveta Health, which will remain headquartered in Nashville, is a
healthcare risk management company that provides services to 630,000 individuals
in California, Illinois, Tennessee and Kansas. Aveta Health arranges for the
provision of healthcare services through its relationships with its owned and
affiliated Independent Physician Associations (IPAs) and Physician Hospital
Organizations (PHOs). Aveta Health provides these services through its North
American Medical Management (NAMM) subsidiaries. Aveta also has two divisions
that provide contract management services to hospital-owned physician groups
(Pivot Health) and consulting and related services to physician groups (Medical
Group Practice Systems).

         Statements about the consummation of the Plan and about future
operations of the Company, including the trading of its securities made in this
release may constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements are based on
current expectations and the current economic environment. The Company cautions
that these statements are not guarantees of future performance. They involve a
number or risks and uncertainties that are difficult to predict, including, but
not limited to, an appeal of the Court's confirmation order by a creditor and
the Company's ability to deregister its securities under the Securities Exchange
Act. Actual events could differ materially from those expressed or implied in
the forward-looking statements. Important assumptions and other important
factors that could cause actual events to differ materially from those in
forward-looking statements are specified in the Company's Annual Report on Form
10-K and quarterly reports on Form 10-Q on file with the Securities and Exchange
Commission.



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