Press Release

PEABODY, Mass., Feb. 8, 2011 /PRNewswire via COMTEX/ --

PHC, Inc., d/b/a Pioneer Behavioral Health (NYSE Amex: PHC), a leading provider of inpatient and outpatient behavioral health services, today announced that it has been awarded an expanded contract to provide enhanced access services to the Detroit-Wayne County Community Mental Health Agency to operate as an entry point for any person requiring information, care and services related to mental health needs, concerns and challenges in Wayne County, Mich. These activities are performed via Pioneer's emergency call center operations in Detroit, Mich., and cover 60,000 consumers in Detroit-Wayne County. This amendment increases Pioneer's current contract from $2.8 million to $4.2 million, a 50% increase annually, for a three-year term which began in 2009 and runs through 2012.

Bruce A. Shear, Pioneer's president and CEO, said, "We are pleased to continue and strengthen our collaboration with the Detroit-Wayne County Community Mental Health Agency and to continue providing superior services to their clients. This contract extension and expansion reflects our continued focus on excellent customer support. In addition, Detroit remains a key growth market for us and the 50% increase in revenue as well as margin improvement for this contract demonstrates our successful efforts to build upon our foundation to address current markets and expand our presence to provide additional services."

Pioneer master's level clinicians and qualified customer service representatives will welcome, screen, triage and link consumers to professional services or provide general information and referral, quickly and within optimum practice standards for the delivery of care. In addition, new callers will receive eligibility determination, and explanation, of applicable benefit plans or coordination of existing benefits.

• Crisis calls are handled by certified clinicians via arrangements with local emergency services. Professional assistance is provided from the initial call until stabilization of the caller or emergency service transfer is initiated.
• The Access Center provides services on a 24/7 basis and is accessible across the local service area, regardless of where a person enters the system. Callers may contact the Access Center from most locations, including a residence, emergency room, provider/government offices, shelters and warming centers.
• From the point of contact they will receive comprehensive services, including screening for determination of level of care, immediate clinical appointments, or acute care admission. All callers will receive follow up calls within a reasonable time to ensure that standards of care are met in the delivery of services.

About PHC d/b/a Pioneer Behavioral Health

PHC, Inc., d/b/a Pioneer Behavioral Health, is a national healthcare company providing behavioral health services in five states, including substance abuse treatment facilities in Utah and Virginia, and inpatient and outpatient psychiatric facilities in Michigan, Pennsylvania, and Nevada. The Company also offers internet and telephonic-based referral services that include employee assistance programs and critical incident services. Contracted services with government agencies, national insurance companies, and major transportation and gaming companies cover more than one million individuals. Pioneer helps people gain and maintain physical, spiritual and emotional health through delivering the highest quality, most culturally responsive and compassionate behavioral health care programs and services. For more information, visit www.phc-inc.com.

Statement under the Private Securities Litigation Reform Act of 1995

This press release may include "forward-looking statements" that are subject to risks and uncertainties. Forward-looking statements include information about possible or assumed future results of the operations or the performance of the Company and its future plans and objectives. Various future events or factors may cause the actual results to vary materially from those expressed in any forward-looking statements made in this press release. For a discussion of these factors and risks, see the Company's annual report on Form 10-K for the most recently ended fiscal year.

SOURCE PHC, Inc., d/b/a Pioneer Behavioral Health