IASIS Healthcare Announces Three Year Old Qui Tam Action Has Been Dismissed

Business Wire, April 1, 2008

FRANKLIN, Tenn. -- IASIS Healthcare[R] LLC announced today that the United States District Court for the District of Arizona has dismissed with prejudice Relator Jerre Frazier's qui tam Complaint against IASIS. The case dates back three years to March 2005 and became the subject of a subpoena by the Office of the Inspector General in September 2005. In August 2007, the case was unsealed and became a private lawsuit after the Department of Justice declined to intervene. On Monday, March 31, 2008, United States District Judge James A. Teilborg dismissed the case from the bench at the conclusion of oral arguments on IASIS' Motion to Dismiss. While the order is appealable, the Company believes that the Court's order in favor of IASIS effectively brings to an end the qui tam litigation in the District Court that has been pending against IASIS since March 2005.

IASIS, located in Franklin, Tennessee, is a leading owner and operator of medium-sized acute care hospitals in high-growth urban and suburban markets. The Company operates its hospitals with a strong community focus by offering and developing healthcare services targeted to the needs of the markets it serves, promoting strong relationships with physicians and working with local managed care plans. IASIS owns or leases 16 acute care hospital facilities and one behavioral health hospital facility with a total of 2,737 beds in service and has total annual net revenue of approximately $1.9 billion. These hospital facilities are located in six regions: Salt Lake City, Utah; Phoenix, Arizona; Tampa-St. Petersburg, Florida; three cities in Texas, including San Antonio; Las Vegas, Nevada; and West Monroe, Louisiana. IASIS also owns and operates a Medicaid and Medicare managed health plan in Phoenix that serves over 127,000 members. For more information on IASIS, please visit the Company's website at www.iasishealthcare.com.