Indeed, Ken, it is. However you can not use the readfile() function (or file() function, or any of the file reading functions) to do so. You should use include() and the files should end in a .php, for compatability and security.
Example:
main.php
<?
include("includes/sessions.php");
echo 'Welcome, '.$user;
?>
includes/sessions.php
Some plain text here will just be outputed as normal (like readfile()).
<?php
session_start();
if(!isset($user)) $user = "Anonymous";
// the above code will be executed
// also note variables are shared
// also note that any code can be in an include()'d file
// including class and function definitions
?>
Hope this helped.
Ceph/Ghak