Broadlane Acquires National Oncology Alliance, Premier Provider of Services for Oncology Physicians.

SAN FRANCISCO -- Broadlane, the leading provider of innovative business services to the healthcare industry, today announced the acquisition of National Oncology Alliance Inc. (NOA), a premier provider of services for oncology physician practices in the United States. The acquisition of NOA's assets, which became effective yesterday, was completed by a wholly owned subsidiary of Broadlane. Terms of the transaction were not disclosed. NOA is a privately held company based in San Rafael, Calif.

Executives at Broadlane and NOA expect that the combination of their two companies will open new opportunities for both to expand their services for the benefit of their customers. Customers spend more than $7 billion annually using the two companies' contracts, with more than $3 billion of that coming from pharmaceuticals. By joining Broadlane, NOA anticipates that it will be able to more rapidly expand its offerings to its physician customers.

"NOA is a first-rate company serving an important and growing market segment, and we are delighted to add NOA and its highly-regarded management team to Broadlane," said Charles E. Saunders, M.D., Broadlane's chief executive officer. "Reining in the rapidly rising cost of drugs in the treatment of cancer and other diseases involving high-cost specialty drugs is a critical issue for our clients, who now collectively represent more than $3 billion in drug spend. With NOA's industry-leading specialty pharmaceutical sourcing capabilities, combined with unique clinical expertise in addressing cancer drug utilization, Broadlane will greatly enhance its capability to help hospitals and physicians control this important driver in the cost of care, and do so in a manner that is complementary to and collaborative with physicians and the way they practice."

Said Eric (Toby) Herfindal, Pharm.D., MPH, president and chief executive officer of NOA, "By joining with an outstanding company like Broadlane, NOA will be able to offer even better services to our physician practice customers around the country. We are very pleased to be joining Broadlane as we collectively look to further rapid growth in our business."

Last week Broadlane was ranked No. 123 on Inc. magazine's 23rd annual Inc. 500 list of the fastest-growing private companies in the United States, posting four-year average annual sales growth of 243 percent.

The total U.S. pharmaceutical market for chemotherapy and supportive care medications is approximately $10 billion annually, with the office-based oncology market representing approximately $8 billion of that total. According to the latest industry surveys, there are approximately 6,000 office-based oncologists in the United States with an average spend per oncologist of $1.2 million per year.

NOA, founded in 2000, today serves more than 50 percent of the physician office-based oncology market. The company's client base includes approximately 3,500 physicians in 1,600 locations in all 50 states.

As a wholly owned subsidiary of Broadlane, NOA will continue its deep relationships with its physician practice customers. In the four years since its inception, NOA has become a leader in the marketplace with strong clinical programs, superior pricing and dedicated customer service. The combined organization should only serve to enhance NOA's competitive position within the industry.

"Our two companies have grown so quickly and been so successful because we both share the belief that if you listen to the needs of your customers you will win in the marketplace," said Saunders. "One of the reasons that NOA is so attractive to Broadlane is the depth of its relationships with its physician customers -- relationships that we look forward to helping deepen and expand."

Under Broadlane ownership, NOA will be able to tap into Broadlane's well-developed support structure, including legal, information technology, financial, human resources and marketing expertise that will allow NOA to concentrate on even more rapidly growing its market reach. The combined company employs approximately 530 people.

This new relationship will be relatively transparent to NOA customers. Broadlane and NOA will remain separate companies, with just a few adjustments within the NOA executive leadership. Toby Herfindal, NOA's chief executive officer, steps down from his day-to-day duties and will join the Broadlane Board of Directors. Kevin Rodondi becomes senior vice president and general manager with operational responsibility for NOA. Mike Cunningham becomes senior vice president responsible for contracting and vendor relations for NOA. Warren Dodge becomes senior vice president responsible for sales and marketing. And Kim Bergstrom becomes vice president responsible for clinical services.

About National Oncology Alliance

National Oncology Alliance Inc. (NOA) supports oncology practices through a comprehensive support network of competitive pricing, business support and clinical services. As a member-based group services organization, NOA represents more than 3,500 physicians and their practices in all 50 states. Through partnerships with major pharmaceutical manufacturers and the Oncology Therapeutics Network (OTN), NOA leverages this purchasing strength to offer market-competitive pharmaceutical contract pricing to its membership. NOA is incorporated in Delaware. For more information, visit www.noainc.com.

About Broadlane

Broadlane delivers transformational business services to healthcare providers, enabling them to reduce costs and improve operational performance. Through the application of innovative technology and sustainable solutions that range from consulting to full-service management, Broadlane is helping to set new standards for efficient healthcare delivery. These solutions include strategic sourcing, clinical and operational consulting, equipment lifecycle management, procurement management and labor services.

Broadlane customers include leading healthcare providers such as Advocate Health Care, CHRISTUS Health, Community Health Systems, Continuum Health Partners, Kaiser Permanente, Kindred Healthcare, Tenet Healthcare, The Health Alliance of Greater Cincinnati, Universal Health Services, US Oncology, William Beaumont Hospitals and others. Broadlane counts among its customers more than 830 acute care hospitals, more than 2,400 sub-acute care facilities and thousands of physician practices. Broadlane is headquartered in San Francisco with offices in Oakland, Calif.; Cincinnati; Dallas; and New York City. For more information, visit www.broadlane.com.