Broadlane Achieves Milestone in Streamlining Healthcare Marketplace.

Business Editors, Health and Medical Writers

MOUNTAIN VIEW, Calif.--(BUSINESS WIRE)--Aug. 15, 2000

Healthcare B2B Leader Successfully Integrates the Procurement Systems

at Tenet Healthcare with Leading Supplier Medline Industries - More

Than 100 Hospitals Now Integrated into Broadlane Marketplace

Broadlane Inc., a leading provider of business-to-business (B2B) e-commerce procurement solutions for the healthcare industry, announced today that it has achieved a milestone in facilitating real-time purchases between 100 Tenet Healthcare Corporation (NYSE: THC) hospitals and Medline Industries, Inc., a major manufacturer and distributor of hospital, medical and surgical supplies. Initial orders were sent on Monday, August 7 and throughout the past week in excess of $100,000 worth of product orders flowed through the system without manual intervention. These first transactions occurred only eight months after the creation of Broadlane, a joint venture formed by Tenet Healthcare and Ventro Corporation.

The rollout of automated transactions to the majority of Tenet hospitals represents a tangible demonstration of Broadlane's ability to electronically integrate the procurement systems of buyers and sellers in the healthcare marketplace. The purchasing systems of most Tenet hospitals are now integrated with Medline's full catalog, containing more than 100,000 products. Broadlane is also working with other non-Tenet hospital systems for integration into its exchange.

"These transactions clearly demonstrate that Broadlane's marketplace -- comprising both a web browser catalog and an ERP systems integration ability -- works to simplify product procurement in a seamless, fully-automated process," said Trevor Fetter, chairman and chief executive officer of Broadlane. "The integration of hospital ERP systems with suppliers' EDI systems will permit hospitals to track orders in real time from placement through delivery, thus dramatically enhancing inventory control."

Tenet, a founding investor in Broadlane, owns and operates 110 hospitals in 17 states. Medline, a leading supplier of high-volume hospital supplies, is the sole source provider to Tenet of custom procedure packs, which include disposable equipment used in surgeries and other frequently performed procedures.

"Broadlane's marketplace will help our hospitals eliminate inefficiencies associated with ordering supplies and thereby save time and money," said Brenda Clayton, senior director of materiel resource management at Tenet. "We have made e-commerce a key part of the business strategy for our hospitals."

Broadlane's e-commerce solution strives to reduce hospital supply chain procurement costs and inefficiencies. According to a 1996 U.S. Efficient Healthcare Consumer Response study, $11 billion can potentially be saved with management improvements to the highly fragmented healthcare supply chain industry. (1)

"Processing these live transactions with Broadlane for our Tenet customers was a key project for us, and the Broadlane team was impressive in the customer-focused way they met the challenge," said Kurt Krieghbaum, senior vice president of national accounts for Medline.

About the Technology

Broadlane uses advanced system integration technology and an electronic data messaging format, called Extensible Mark-Up Language (XML), to more efficiently link hospitals with suppliers. Currently, suppliers of healthcare goods and equipment use proprietary Electronic Data Integration (EDI) systems, introduced almost 20 years ago, that require hospitals to install specialized expensive equipment or software in order to electronically order supplies from that company. If a hospital cannot afford to install the necessary equipment, orders are placed manually. All the different EDI systems and individualized resource and inventory management systems within hospitals contribute to a very fragmented marketplace and inefficient way of ordering supplies. Broadlane uses XML to translate the information entered into existing hospital systems, transmits it over the Internet, and makes it compatible with the various EDI systems of suppliers. Hospitals and suppliers can benefit from this solution without altering their existing technology or interrupting their established relationships with suppliers.

The Broadlane marketplace is built on technology developed by Ventro Corporation (NASDAQ:VNTR), a builder and operator of proven B2B marketplaces and a founding investor in Broadlane. Broadlane is the fourth marketplace that is currently processing transactions using Ventro technology. Others are Chemdex, Promedix and Industria Solutions.

About Broadlane

Among those companies that focus on improving efficiencies within the healthcare supply chain, Broadlane is unique because it offers customers cutting edge e-commerce technologies as well as leading group purchasing organization (GPO) services--all from the same organization. The buyer-focused company has developed an electronic procurement marketplace capable of seamlessly and automatically integrating hospital ERP systems with suppliers.

At the same time, its GPO, BuyPower, is a recognized leader in providing effective sourcing, real-time pricing, contract compliance, management, shipment tracking and other critical data management services. BuyPower also offers an online "click and buy" catalog of contracted products.

Broadlane was founded in December 1999 as a joint venture between Tenet Healthcare Corporation and Ventro Corporation. The company is headquartered in Mountain View, Calif. and has substantial operations in Dallas. For more information, visit Broadlane at www.broadlane.com.

About Medline

Based in Mundelein, Ill., Medline is the largest privately held national manufacturer and distributor of medical supplies and equipment in the country. It has more than 500 dedicated sales representatives nationwide to support its broad product line and cost management services. Medline distributes 100,000 products to hospitals, extended care facilities, surgery centers, hospital laundries, home care dealers and agencies and other alternate site markets from its 21 distribution centers in the U.S. With five manufacturing facilities in North America, Medline manufactures 70 percent of the products it sells. More information about Medline can be found at www.medline.com.

About Tenet

Tenet Healthcare, through its subsidiaries, owns and operates 110 acute care hospitals with 26,942 beds and numerous related health care services. The company employs approximately 106,000 people serving communities in 17 states and services its hospitals from a Dallas-based operations center. Tenet's name reflects its core business philosophy: the importance of shared values among partners - including employees, physicians, insurers and communities - in providing a full spectrum of health care. For more information, visit Tenet at www.tenethealth.com.

About Ventro

Ventro Corporation is pioneering the new B2B e-commerce economy by building and operating companies that create world-class online marketplaces for the 21st century. These marketplaces transform the supply chain in businesses around the world, allowing suppliers, buyers and enterprises across highly fragmented markets to gain increased market access, reduce inefficiencies and enhance productivity. Ventro provides a complete marketplace solution required for rapidly creating and enabling successful marketplaces, including a robust technology platform, operations, business-building and partner capabilities. Ventro operating companies include Chemdex, Promedix, Broadlane, Industria Solutions, Amphire Solutions and MarketMile. For more information, visit Ventro at www.ventro.com.

(1) Efficient Healthcare Consumer Response(TM)(EHCR): Improving the Efficiency of the Healthcare Supply Chain, 1996.