Children's Hospital of Pittsburgh Extends Comprehensive Outsourcing Contract with Phoenix Health Systems

Montgomery Village, MD – August 2, 2006 – Children's Hospital of Pittsburgh has extended its contract for comprehensive IT outsourcing with Phoenix Health Systems. The two-year contract (Dec. 2007 - Nov. 2009) is an extension of Children's original three-year contract signed in 2004.

Under the renewed agreement, Phoenix, a national provider of healthcare strategic consulting, IT outsourcing and revenue cycle management services, will continue to staff and manage the hospital system's Information Services Department, including providing IT strategic planning, project management, network management, desktop support and data center management. Phoenix is also engaged with Children's in implementation of Carnegie Mellon's e-Sourcing Capability Model (eSCM). This world-class vendor support model will ensure enhanced quality standards and increased value for Children's Hospital of Pittsburgh.

"Phoenix is extremely pleased to receive this early vote of confidence from the management of Children's Hospital of Pittsburgh," said Darin LeGrange, President and CEO of Phoenix Health Systems. "We are committed to exceeding Children's expectations over the next several years by continuing to offer value-added solutions, such as the implementation of Carnegie Mellon's e-Sourcing Capability Model and innovative IT-based initiatives that will improve healthcare delivery and reduce costs."

About Children's Hospital of Pittsburgh

Children's Hospital of Pittsburgh is dedicated to improving the health and well-being of all children through excellence in patient care, teaching and research. Renowned for its outstanding clinical services, Children's Hospital of Pittsburgh has helped establish the standards of excellence in pediatric care. From Ambulatory Care to Urology, talented and committed pediatric experts care for infants, children and adolescents who make about 400,000 visits to Children's and its many neighborhood locations each year.

Children's is a 260-bed institution dedicated solely to the care of infants, children, and young adults. The hospital is the only accredited Level 1 Pediatric Regional Resource Trauma Center in western Pennsylvania and one of only three in the state. Children's has been named consistently to several elite lists of pediatric healthcare facilities. This recognition includes being ranked as one of the top children's hospitals in the country by US News and World Report and one of the top 10 most-funded pediatric hospitals receiving grants from the National Institutes of Health. For additional information, visit www.chp.edu.

About Phoenix Health Systems

Headquartered in Montgomery Village, MD with corporate offices in Dallas, TX and Honolulu, HI, Phoenix Health Systems provides an integrated set of professional, technical and business services that focuses on the business goals of all departments within the healthcare organization. Through strategic consulting, IT outsourcing and revenue cycle management, Phoenix can help any healthcare organization achieve its long-term objectives of administrative cost reduction, increased cash flow, improved patient safety, and regulatory compliance. For additional information, please contact Chris Madeira at (301) 240-1500, or visit www.phoenixhealth.com.