PHNS




	Press Releases PHNS pays $100 million to its hospital partners DALLAS, TX- November 13, 2006 –PHNS Inc. announced that it has completed the payment of an additional $40,000,000 to its hospital partners McLaren Health Care Corporation, Flint, Michigan; General Health System; Baton Rouge, Louisiana; and Adventist HealthCare, Inc., Rockville, Maryland. This brings the total that PHNS has paid in cash to its hospital partners to $95,500,000 during the past six years. PHNS is unique among hospital services providers since it enters into partnerships with hospital systems in which PHNS pays cash and stock as payment for becoming PHNS hospital partners, and provides its hospital partners with cash payments annually for their share of cost savings produced by PHNS. PHNS’ hospital partners own 20% of its stock and make up 40% of its Board of Directors. “Delivering almost $100,000,000 to our not-for-profit hospital partners in only six years shows the power and huge potential of PHNS’ innovative hospital partnerships”, said Chick Young, Chairman and CEO of PHNS. “And we’ll deliver even more cash to our hospital partners in the future through their PHNS stock ownership and their ongoing share in cost savings.” Mr. Young added that “the nearly $100,000,000 of cash payments does not include the tens of millions of cost avoidance dollars that PHNS has saved for its hospital partners through our tough negotiations for reduced vendor prices on hardware, software and other big ticket expenditures.” Phil Incarnati, CEO of McLaren Health Care Corporation, stated, “Our PHNS relationship is about results. All of PHNS’ service and financial promises have been kept—in fact more than kept.” Bill Holman, CEO of General Health System, said, “Our partnership with PHNS has reduced our costs, improved our service, and provided millions of dollars in cash that we’ve reinvested in our growing hospital.” Bill Robertson, CEO of Adventist HealthCare, Inc., added, “Our partnership with PHNS has resulted in improved IT services and millions of dollars in cash for our organization.” About McLaren: McLaren Health Care is a fully integrated health network committed to meeting the health care needs of Michigan residents throughout its 27 county service area. Components of the McLaren system include 7 acute care hospitals, outpatient facilities, ambulatory surgery centers, imaging centers, freestanding dialysis centers, an employed primary care physician network, assisted living facilities, commercial and Medicaid HMOs, home health care, durable medical equipment, allopathic and osteopathic graduate medical education programs, and a wholly-owned medical malpractice insurance company. About General Health: General Health System is the parent company of Baton Rouge General Medical Center, the only community-owned, not-for-profit, full service hospital in Baton Rouge. In addition to the 448-bed Mid City and Bluebonnet hospital facilities, affiliated entities of General Health System include First Care Physicians, AMC/Interlink and Verity HealthNet. The General Health System’s mission is to improve the health of the Greater Baton Rouge community by providing a broad range of innovative healthcare services, delivered in a caring, consumer-oriented and cost-effective manner. About Adventist HealthCare: Adventist HealthCare, a faith-based health care delivery organization based in Rockville, Maryland, is one of the largest employers in the State of Maryland. The mission of Adventist HealthCare is to deliver excellent healthcare through a ministry of physical, mental and spiritual healing. Adventist HealthCare provides care to more than 450,000 people per year and employs 7,200 health care professionals. The Adventist HealthCare family of organizations includes Washington Adventist Hospital, Hackettstown Regional Medical Center, Shady Grove Adventist Hospital, Potomac Ridge Behavioral Health System, Adventist Rehabilitation Hospital of Maryland, Adventist Senior Living Services, Greater Washington Sleep Disorders Centers, Adventist Home Health Services, the Reginald S. Lourie Center for Infants and Young Children, and LifeWork Strategies. About PHNS: PHNS provides comprehensive healthcaring solutions for hospitals including information technology, health information management (including medical record management and storage, transcription, coding, release of information and electronic medical record services) and receivables management services. Serving more than 425 U.S. hospitals, PHNS creates business-healthy hospitals by improving operations, enhancing technology and increasing cash on hand. This allows hospitals to focus on their core competency--patient care. PHNS is a national healthcare services company headquartered in Dallas, Texas. See www.phns.com for additional information about PHNS.