BlueCross BlueShield of Tennessee to Acquire Gordian Health Solutions; Purchase to Enhance BlueCross' Consumer Focus, Position Gordian for National Growth.

CHATTANOOGA, Tenn. -- BlueCross BlueShield of Tennessee and Gordian Health Solutions, Inc., announced today that the Tennessee Blues plan will acquire Gordian. The boards of both companies have approved the purchase, and the acquisition should be completed by the end of August.

Gordian, a privately held company headquartered in Nashville, Tenn., is a leading provider of population health management services for mid-to-large sized companies across the United States. It concentrates on lifestyle, health management, and disease management services designed to help employers maintain a healthy and productive workforce and manage rising health care costs. Founded in 1996, Gordian employs more than 200 workers located in its Nashville office and offices in Richmond, Va., Scotts Valley, Calif., and Vernon Hills, Ill.

"This purchase is a major step in BlueCross' continuing consumer-directed efforts," said BlueCross President and CEO Vicky Gregg. "Gordian adds to our company's capabilities by expanding our lifestyle and disease management programs and allowing us to offer more services that can keep health care costs affordable for our members."

Gordian's clients usually see a measurable return on investment the first year, with even greater savings in later years.

Gordian President & CEO Gregg Lehman said the acquisition gives Gordian a number of significant resources of a major health care company, including financing, administration, and sales contacts, as Gordian markets its services to businesses and government agencies across the nation. "By joining with BlueCross BlueShield of Tennessee, Gordian now has the capacity and scale to meet the needs of our growing list of clients and services," he said.

According to Gregg, the acquisition is reflective of the rise in consumerism in the health care marketplace and an increased interest among employers of workplace health promotion. As consumers are encouraged to become more engaged in their health care decisions, the industry strives to offer the resources and tools to help them navigate their care and achieve their health goals.

"Bottom line, investing in employee health is good for business," said Gregg. "The more committed companies are to disease management and worksite health and lifestyle management programs like those offered by Gordian, the greater the chance to positively impact their employees' health care quality and costs."

Gordian will operate as a wholly owned subsidiary of BlueCross. Gregg and Lehman said Gordian's headquarters will remain in the Nashville area and operate under the current management team.

About Gordian Health Solutions

Gordian is a national population health management company based in Nashville, Tennessee. The company offers a comprehensive suite of products and services. Gordian works with employers, health plans and hospital's to identify, control and manage health risk factors and their associated costs. Through targeted and tailored programs, and sophisticated tracking, monitoring and reporting capabilities, Gordian works with clients to measure program progress and cost savings. For more information about Gordian Heath Solutions, visit Gordian-Health.com.

About BlueCross

BlueCross BlueShield of Tennessee is the state's oldest and largest not-for-profit health plan, serving more than 2.6 million Tennesseans. Founded in 1945, the Chattanooga-based company is focused on financing affordable health care coverage and providing peace of mind for all Tennesseans. BlueCross serves its members by delivering quality health care products, services and information. For more information on BlueCross BlueShield of Tennessee, visit the company's Web site at www.bcbst.com.