Triad Hospitals, Inc. Selects Electronic Medical Record Technology From McKesson to Connect Its Physicians Across U.S.

Market Wire, July, 2006

McKesson today announced an agreement with Triad Hospitals, Inc., to deploy McKesson's Horizon Ambulatory Care(TM) electronic medical record (EMR) solution to nearly 775 employed physicians practicing out of 195 clinics across the country. The EMR initiative builds upon a strategic relationship announced six months ago to deploy a wide range of McKesson's market-leading Horizon Clinicals® and revenue cycle solutions across Triad's acute-care delivery network in 16 states. The ambulatory agreement, which includes McKesson's physician practice management solution, will leverage the integration between the new inpatient setting, McKesson's IT infrastructure and the ambulatory technology. Once complete, the project will connect participating physician offices and other participating service providers with secure, easy access to coordinated patient information enabling them to make more informed treatment decisions.

"Equipping our staff physicians with EMR technology is a natural extension of our clinical excellence and business transformation programs," said Karen Flinn, vice president, Physician Integration and Managed Care, Triad Hospitals, Inc. "The adoption of this technology will create a true, integrated EMR that will support the entire care continuum to work more efficiently and collaboratively to the ultimate benefit of our patients and the communities we serve."

After a comprehensive review process, Triad chose to offer the Horizon Ambulatory Care(TM) solution to enable staff physicians to manage their patients using secure, Web-based electronic prescribing, encounter documentation and clinical order entry. Triad also chose to offer Horizon Practice Plus(TM), McKesson's physician practice management solution to support its administrative and billing processes. Triad also has selected McKesson to provide ongoing revenue cycle outsourcing (RCO) services to its physician practice group in Tulsa, Okla. Under terms of that agreement, McKesson will provide supplemental staffing and serve as an extension of the business office, managing the entire accounts receivable and providing comprehensive management reporting and documentation.

McKesson's market-leading EMR solution is designed to speed technology adoption by offering providers unique flexibility to install the technology using a customized, modular approach. Plans call for Triad to implement McKesson's ambulatory solutions in an incremental path that builds upon the Horizon Clinicals technology infrastructure. McKesson's e-prescribing solution will be deployed first to create immediate clinical benefits and establish the platform for the complete ambulatory system. Perot Systems Corporation will support the ambulatory initiative by augmenting the implementation team, providing hardware and hosting the solution. Later plans call for Triad to offer the solutions to its affiliated physicians.

"We are pleased by Triad's decision to expand its partnership with McKesson," said Pamela Pure, president of McKesson Provider Technologies. "McKesson's ambulatory strategy is gaining broad market acceptance and our recent CCHIT certification certainly supports that momentum. Our integrated, proven applications allow for incremental deployment, which enables organizations like Triad to drive clinical excellence, expand its hospital infrastructure and strengthen its physician relationships. The result is lasting adoption of EMRs in the communities they serve."

About Triad Hospitals, Inc.

Triad Hospitals, Inc., through its affiliates, owns and manages hospitals and ambulatory surgery centers in small cities and selected larger urban markets. Triad currently operates 51 hospitals and 12 ambulatory surgery centers in 16 states with approximately 9,400 licensed beds. In addition, through its QHR subsidiary, the company provides consulting, education, intensive resources and management services to hospitals and health systems throughout the United States. For more information, please visit www.triadhospitals.com .

About McKesson

McKesson, currently ranked 16th on the FORTUNE 500, is a healthcare services and information technology company dedicated to helping its customers deliver high-quality healthcare by reducing costs, streamlining processes, and improving the quality and safety of patient care. Over the course of its 173-year history, McKesson has grown by providing pharmaceutical and medical-surgical supply management across the spectrum of care; healthcare information technology for hospitals, physicians, homecare, and payors; hospital and retail pharmacy automation; and services for manufacturers and payors designed to improve outcomes for patients. For more information, please visit: www.mckesson.com .

Contact: Robin Wrinn (404) 338-4249 Email Contact