SISTERS OF PROVIDENCE HEALTH SYSTEM JOINS HEALTH NEW ENGLAND’S NETWORK FOR SELF-INSURED EMPLOYERS

SPRINGFIELD – Health New England and the Sisters of Providence Health System today announced an agreement that allows a portion of HNE’s subscribers to use Mercy Medical Center and other medical and diagnostic services through the Sisters of Providence Health System.

Under the agreement, which is effective as of Jan. 1, 2003, SPHS will join H N E ’s provider network for selfi n s u red employer plans that are administered by HNE. This will give about 18,000 of the 90,000 people now covered by Health New England a greater choice in health services in the Springfield area. SPHS and HNE will continue to work together to consider a broader relationship in the future. HNE members affected by this change will ne notified by mail and will receive specially-designed membership cards.

“We are glad that our discussions with SPHS have produced this agreement. We will be working closely with S PHS, and want to create a relationship that will benefit HNE, SPHS and the Sp r i n gfield area community, ” said Peter Straley, President and Chief Executive Officer of Health New England.

Those in the self-insured plans will now be eligible to use a broad range of inpatient and outpatient medical and diagnostic services of the Sisters of Providence Health System, which includes Me rcy Medical Center and Weldon Rehabilitation Hospital on the Carew St reet campus in Sp r i n gfield and the behavioral health services at Providence Hospital in Ho l yoke, which offers inpatient and outpatient mental health services for childre n and adults, and Brightside for Families and Children in West Springfield. SPHS’ three hospitals have 362 beds in the Sp r i n gfield and Ho l yoke communities. The system also includes a regional diagnostic laboratory.

Vincent J. McCorkle, President and Chief Executive Officer of the Sisters of Providence Health System, said SPHS and its more than 3,700 employees and associated physicians welcome the opportunity to serve this new community of people.

“We will continue working with HNE so that HNE’s members have access to Mercy Medical Center and the SPHS network of services,” said McCorkle.

In self-insured health plans that will now provide access to SPHS services, a sponsor (usually an employer) is directly responsible for the cost of the health care benefit. For these plans, HNE provides administrative and customer services to the plan sponsor. HNE also makes agreements with a network of participating health care providers, who care for members of the self-insured plans.

Over the next weeks, HNE and SPHS will be talking to local self-insured employers about the new relationship to promote interest in the new arrangement. If additional self-insured employers purchase the Health New England insurance product, it will increase the number of people with access to SPHS through HNE plans. HNE and SPHS have also agreed to evaluate the results of this relationship and will be considering whether SPHS should participate in additional HNE plans in the future. HNE covers about 90,000 people in western Massachusetts.

Health New England is a managed care company located in Springfield, Massachusetts with a branch service office in Pittsfield. Health New England’s insured HMO and point of service plans received an “Excellent” accreditation from the National Committee for Quality Assurance (NCQA), a national accreditation organization, on July 3, 2000. Health New England is also the only Massachusetts health plan named as one of the top 15 accredited plans in the nation in member satisfaction (according to the Consumer Assessment of Health Plans (CAHPS® 2.0 survey, which is conducted on behalf of the NCQA). For information about HNE products, call Juan Campbell at 413-787-4000, extension 3377, or visit the HNE Web site, www.healthnewengland.com.

The Sisters of Providence Health System, founded more than 129 years ago in Holyoke, is a member of Catholic Health East, one of the largest health systems in the country.

For information about the SPHS services, call 413-748-9704 or visit the Web site www.mercycares.com.

Some Questions and Answers About the Agreement