MedAssets Signs Agreement with Legacy Health System for Enterprise-Wide Solutions Agreement to Include Supply Chain and Revenue Cycle Technology as Well as CrossWalk™ To Link Charge Data and Supply Cost Data

Business Wire, June 28, 2005

ATLANTA -- MedAssets has signed a multi-year agreement with Legacy Health System, based in Portland, Ore., to implement enterprise-wide solutions to improve cash flow from existing operations and to support its ongoing business process improvement. Legacy Health System has a total annual supply spend of approximately $150 million. The contract was effective beginning June 1, 2005. Legacy formerly used Premier, Inc.

Legacy Health System is one of the largest, non-profit healthcare systems in the state of Oregon with about 8,000 employees, five hospitals and a network of primary care clinics. Legacy is an integrated network of health care services, including acute and critical care, inpatient and outpatient treatment, community health education and a variety of specialty services. Legacy is scheduled to open its fifth hospital in Southwest Washington in August 2005.

The new agreement includes all MedAssets supply chain and revenue cycle technology including CrossWalk(TM), the tool that automatically and continuously links supply cost data with charge data across existing IT platforms. All MedAssets' tools are designed to automate manual processes and prevent errors upstream. The entire suite of tools are part of the MedAssets Merge Technology(TM) platform that links independent systems, functional departments, and people in a way that improves data quality in revenue cycle and supply chain operations so that providers improve decision-making and cash flow. Specifically, Legacy will have the ability to know that charges cover costs for patient identifiable supplies, including costly medical devices, and to ensure reasonable charges to the patient populations they serve.

"We believe that the benefits of engaging all of MedAssets' technologies and services, in addition to its supply chain contracts, will not only enable us to further reduce our supply costs, but also increase our net revenues," said Pam Vukovich, chief financial officer, Legacy Health System. "The additional benefits of linking supply chain data with revenue cycle data will give us visibility into our financial data that we have not had previously. This will help us to make more informed decisions to improve our cash flow."

MedAssets' supply chain tools provide the ability to manage all supply contracts and increase the percentage of on-contract spend resulting in cost savings and increased control over purchasing processes. The new agreement includes a local compliance catalog of local, regional and national contracts to ensure that Legacy receives optimal pricing for all supply items. Also included is MedAssets' Strategic Information (SI), which translates purchasing data into meaningful information to assist in accessing correct contract pricing and facility item master management. SI will provide Legacy the ability to aggregate, analyze and act upon its procurement data.

MedAssets' revenue cycle tools suite will give Legacy access to chargemaster monitoring and maintenance, charge capture auditing and comparative rate modeling tools.

"MedAssets is committed to providing the tools our customers need to improve financial performance and continue to provide high quality patient care," said Rand Ballard, president, MedAssets Supply Chain and Business Services Group. "Implementation of the entire suite of MedAssets' technology will offer Legacy maximum financial results within the supply chain and revenue cycle as well as additional cash and compliance-related benefits from linking the two systems."

For more information about MedAssets' revenue and supply chain solutions or CrossWalk(TM), visit www.medassets.com.

About Legacy Health System

Legacy Health System is one of the largest Oregon-based, non-profit healthcare systems in Oregon. Legacy offers a full range of tertiary care services at sites throughout the Portland metropolitan area. In August 2005, Legacy will open a brand new, state-of-the-art hospital in Southwest Washington. Comprehensive programs and services are offered in many clinical areas, including cancer, heart, imaging and laboratory, pediatrics, rehabilitation, research, seniors and women's. Legacy operates a trauma program, a children's hospital and the state's only burn center.

About MedAssets

MedAssets, headquartered in Atlanta, Georgia, improves healthcare providers' margin and cash flow through revenue cycle and supply chain initiatives. As a strategic business partner, MedAssets can replace multiple vendors and decrease supply costs by 3-10 % and increase net patient revenue by 1-3 %. Proprietary information technology is used to work with and improve existing IT assets and work processes. MedAssets, through its revenue cycle subsidiary MedAssets Net Revenue Systems, provides best-of-breed revenue solutions including strategic pricing, pre-bill charge capturing, and ongoing chargemaster management tools, all of which have been Peer Reviewed by the Healthcare Financial Management Association. In addition, MedAssets offers the only technology enabled system that links supply cost data with charge data to ensure accurate charges and defendable markups for all patient identifiable supplies, including costly medical devices. MedAssets, through its supply chain subsidiary MedAssets Supply Chain Systems, operates the fastest growing group purchasing organization and supply chain services company in the U.S. and builds customized solutions encompassing procurement of common medical supplies, pharmaceuticals, physician preference supplies, food and nutrition items, and capital equipment.