VHA Inc. Delivered Record $1.38 Billion in Savings and Value to Health Care Provider Members in 2008

IRVING, TX, Jun 01 (MARKET WIRE) --
VHA Inc., the national network of not-for-profit community-owned health
care organizations, reported today that it delivered record savings and
value to members in 2008 of more than $1.38 billion. In addition, VHA's
clinical programs helped members improve care for the 10 million patients
who are treated at VHA hospitals every year. The announcement comes as
leaders across the country are investigating how to reform the nation's
health care system that provides inconsistent care and is on a spending
path that is unsustainable.

"The results VHA achieved in partnership with its members in 2008 prove
that the impossible is possible," said Curt Nonomaque, president and chief
executive officer of VHA. "America can reform our health care system in
ways that provide safe and quality care for patients and control
skyrocketing costs. We can do both. And the programs VHA and its members
are creating are a big part of the solution."

The cash and savings VHA delivered to members in 2008 topped the results
of any other alliance for the year, demonstrating the value that can be
achieved through integrated clinical, supply chain and networking
programs. Key 2008 member results included:

-- $383.8 million in cash distributions to members, far more than any of
VHA's competitors offer;
-- $997 million in savings on purchases, up from $930 million in 2007.
The 7% increase resulted from greater usage of VHA's supply chain
management offerings.

Nonomaque said that these kinds of results can only be achieved when
VHA is in close alignment with its members' needs. "And while the
financial returns are impressive and make us proud," he said, "the fact
that VHA's member loyalty and satisfaction scores hit an all-time high in
2008 means we're absolutely headed in the right direction."

NOTE: The cash distribution decreased 4.6%, from $402.4 million in 2007.
The reduction in cash value is primarily due to lower manufacturer
rebates, which were offset by lower prices for supplies purchased under
contract. To help members address immediate financial stress, VHA is
emphasizing upfront price savings on the member purchases of supplies and
services, rather than rebates in the form of cash distributions. As a
result, members saved more in 2008 than in any previous years on
purchases made through VHA and its supply contracting company, Novation.

Clinical Improvement Services

2008 saw increased emphasis in VHA's efforts to disseminate clinical
improvement knowledge to members, providing access to information and
resources that are proven to drive clinical quality and patient safety.
The cornerstone of VHA's clinical program, VHA's Leading Practices Portal,
was significantly enhanced to include easier and more intuitive
navigation, as well as a new comprehensive Leading Practice Blueprint(TM)
catalog. The updated research-based Blueprints now capture the cultural
elements and hidden factors that truly define leading performance, a
component essential to success. VHA has provided more than 40 Leading
Practice Blueprints and hundreds of member hospitals tap into these
Blueprints to accelerate performance improvement. VHA's Clinical
Education Series connects members through live satellite broadcast
programs and teleconferences so they can learn from other members who are
proven leading performers in specific areas of clinical quality and
patient safety.

Supply Chain Management

VHA offers savings on purchased services, supplies, drugs, devices and
capital equipment. Last year, VHA members obtained more than $25 billion
in supplies and purchased services through VHA and its supply contracting
company, Novation. This figure represents a 4.6 percent increase in
contracted purchases over 2007.

VHA's supply chain management offering includes services to significantly
reduce costs throughout the hospital and improve clinical and operational
performance in physician preference areas. VHA recently implemented a
transformational program that reduced costs by nearly $16 million and
successfully improved the operational environment for Tucson Medical
Center in Tucson, Ariz.

VHA and Tucson Medical Center implemented nearly 200 cost-saving measures
throughout the hospital. Examples of the realized savings are:

-- $2 million in pharmacy
-- $2.3 million in surgical services
-- $1.4 million in spine & joints
-- $1.2 million in catheterization lab
-- $2.2 million in support services

Member Networks

VHA's member networks enable hospitals to collaborate and develop
solutions for common operational and clinical challenges. VHA member
networks take many forms, some focusing on enhancing member purchasing
value, such as the AROK Purchasing Coalition, made up of 21 hospitals in
Arkansas and Oklahoma, as well as other networks that have a defined
clinical agenda, such as a network in the Central Atlantic region that
allows members to work together to prevent the spread of antibiotic
resistant infections. VHA provides clinical staff to help manage these
network activities, data collection support and implementation support to
help the networks achieve their business or clinical objectives.

Financial Information

The work to help VHA members strengthen their bottom line was complemented
in 2008 with strong business results for VHA. VHA revenue increased 3.8
percent, from $599.6 million to $622.4 million. Operating income increased
9 percent, from $303.6 million to $331 million. To access a copy of VHA's
Annual Report, go to www.vha.com.

VHA Inc. is a national network of more than 1,400 not-for-profit community
hospitals and 23,000 non-acute care providers working together to improve
their clinical and financial performance. VHA offers comprehensive supply
chain management services, world-class health care analytics and an
innovative suite of clinical support services. The VHA network includes
some of the nation's largest integrated delivery systems, urban health
care providers and small, rural hospitals. VHA, recognized for its
citizenship and sustainability practices, is based in Irving, Texas, and
has a network of 16 regional offices across the country.

Media Contact:
Lynn Gentry
Email Contact
972/830-0798

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