Blue Shield of California and Sutter Health Sign New Agreement.

Business Editors/Health & Medical Writers

SACRAMENTO, Calif.--(BW HealthWire)--Sept. 6, 2001

Blue Shield of California and Sutter Health announced today that they have completed an early renewal for 2002 of their contract for Sutter-affiliated physicians and hospitals. The contract applies to covered medical services for all members of Blue Shield of California's managed care plans. Through this agreement, more than two dozen hospitals and physician organizations will continue to provide uninterrupted, high-quality, comprehensive medical services to 41,000 Blue Shield members.

"Stable relationships between health plans and provider organizations are extremely important, and we're very pleased that our two not-for-profit health care organizations have reached an early agreement for 2002," said Sutter Health President and CEO Van R. Johnson. "This is especially important as many Northern California residents make important decisions this summer and fall about their health care coverage for 2002."

"It is Blue Shield's goal to develop and maintain positive relationships with the provider community in order to offer our members access to quality healthcare from a broad network of participating healthcare professionals and facilities," said Bruce Bodaken, chairman and CEO of Blue Shield of California. "This early agreement with Sutter is key to achieving this goal."

One of the nation's leading not-for-profit networks of community-based health care services, Sutter Health serves more than 100 Northern California communities, from the Oregon border to the San Joaquin Valley, and from the Pacific coast to the Sierra foothills.

Sutter medical centers care for more inpatients than any other network in Northern California, and are the regional leaders in infant deliveries, neonatology, orthopedics, pediatrics and cancer care services. Sutter Health supports more than two dozen acute care hospitals; physician training programs, medical research facilities, region-wide home health, hospice and occupational health networks; and long term care centers. Sutter's hospitals and care centers have relationships with approximately 5,000 physicians and employ more than 30,000 people.

Blue Shield of California was founded in 1939 by physicians who recognized the importance and value of providing quality health care to the citizens of California at a reasonable cost. Today, with 2.3 million members, Blue Shield is one of the leading health care companies in one of the nation's most mature managed-care states. It attained this position by holding firm to its core mission of providing access to quality healthcare coverage at reasonable rates. The company, headquartered in San Francisco, has nearly 4,000 employees and more than 20 office locations throughout California.