Private Healthcare Systems Names Armand Morin Senior Vice President, Operations

Market Wire, May, 2005

Private Healthcare Systems (PHCS) today announced the appointment of Armand Morin to Sr.Vice President, Operations. In this expanded role, Mr. Morin assumes responsibility for Network Operations, which he has been overseeing since January. Functions of the Network Operations area include: provider data management, provider relations and operations for the claims and credentialing areas. In addition, Mr. Morin continues to oversee the company's information systems and infrastructure.

Prior to joining PHCS, Mr. Morin was President of Specialized Medical Management, Inc. (SMMI), a subsidiary of Texas Health Resources, where he provided systems and technical services to health plans, provider groups and hospitals. He also served as Chief Operating Officer for Reilly Dike Dosher Corp. (RDD Corp.), a managed care systems and services organization. In that role, he directed the consulting, development, implementation and outsourcing services in support of health plans, insurers and third-party administrators. Mr. Morin was also a Senior Information Services executive at Blue Cross Blue Shield of Massachusetts.

"I am very pleased that Armand has accepted the position of Senior Vice President of Operations. During his time with PHCS, Armand has been instrumental in corporate operational initiatives," said Joseph Driscoll, PHCS President and CEO. "With his industry background and achievements here at PHCS, Armand is a natural fit for this newly created position."

Mr. Morin holds a Bachelor of Science in Management Information Systems from Northeastern University.

About PHCS

For 20 years, Private Healthcare Systems has been meeting the network and care management needs of customers across the country. Corporate headquarters are in Waltham, Massachusetts, with regional offices located throughout the United States. PHCS is the second largest care management company in the country as well as the largest national proprietary PPO. The PHCS Network includes nearly 450,000 providers and more than 4,000 facilities. PHCS is the first and only national PPO to earn four endorsements of quality from two independent, nationally recognized quality assurance organizations, NCQA and URAC.

Contact: Jacqui Ibbitson (781) 895-3183 jibbitson@phcs.com